TULSA — Laredo Petroleum Holdings Inc. is moving out of the Anadarko Basin.
Laredo announced Tuesday it is selling about 104,000 acres of leasehold and associated infrastructure in western Oklahoma and the Texas Panhandle to affiliates of Houston-based EnerVest Ltd. for $438 million in cash.
The Tulsa-based oil and natural gas producer intends to turn its attention to more lucrative acreage in west Texas' Permian Basin.
Laredo's stock rose more than 6 percent after the EnerVest deal was announced Tuesday. It closed at $20.22, up $1.16 a share.
Laredo produced about 4.9 billion cubic feet of natural gas and 49,000 barrels of crude oil and condensate from its Anadarko Basin acreage in the first quarter.
The company reported its proved reserves there totaled about 162 billion cubic feet of gas and 1.5 million barrels of oil and condensate at the end of 2012.
“The Anadarko Basin has been a meaningful part of Laredo's rapid growth in reserves and production for the past five years,” CEO Randy A. Foutch said. “However, the continued success that Laredo is experiencing with its Permian-Garden City properties makes this an ideal time to redeploy capital from this transaction into what we believe are even higher returning projects in the Permian Basin.”
Foutch said Laredo expects to add two more horizontal drilling ribs to its development program in the Permian. The company will have six rigs drilling multi-well pads by the end of the year.