Prairie Operating Co., Houston, has agreed to acquire Dener Julesburg (DJ) basin assets from Bayswater Exploration and Production, Denver, in a cash and stock deal valued at $603 million.
Prairie Operating, in a deal presentation Feb. 7, said the acquisition substantially increases its oil-weighted production and provides immediate scale and operating leverage. For Prairie Operating Co., the deal builds on its 2024 agreement to acquire DJ basin assets of Nickel Road Operating LLC and its approval by the Colorado Energy and Carbon Management Commission for its Genesis I Oil & Gas Development Plan in the basin (OGJ Online, Jan. 12, 2024; Mar. 14, 2024).
The sale of rural Weld County assets includes about 24,000 leased acres, 300 producing horizontal wells on 30 pads, and 25,000 boe/d (69% liquids), Bayswater said in a release Feb. 7. The deal also includes 9 newly drilled but not yet completed horizontal wells (DUC), and a Bayswater-operated saltwater disposal system.
When the deal closes, expected this month, privately held Bayswater will retain and operate 70 horizontal wells producing about 18,000 boe/d in the basin where it currently has one rig actively drilling on the remaining DJ basin position, it said. Bayswater’s assets in Texas are unaffected.
Prairie Operating updated guidance
Prairie Operating said the company expects pro forma average production in 2025 of 29,000-31,000 boe/d and capital expenditures of $300-320 million.
