EXHIBIT 99.1
For
Information
Brent A. Collins
303-861-8140
FOR
IMMEDIATE RELEASE
ST.
MARY UPDATES STATUS OF ROCKY MOUNTAIN DIVESTITURE PROGRAM
·
|
Agreements
reached to sell Rocky Mountain oil package in two separate transactions
for a total of $267 million
|
·
|
Sale
of Hanging Woman Basin coalbed methane project and additional
non-strategic property sales raise roughly $40
million
|
·
|
Sale
proceeds plus anticipated cash flow from operations expected to fund 2010
capital budget
|
DENVER, January 8, 2010 – St.
Mary Land & Exploration Company (NYSE: SM) today provides an update on
previously announced divestiture activities in the Company’s Rocky Mountain
region.
MANAGEMENT
COMMENTARY
Tony
Best, CEO and President, commented, “The sale of these non-core properties in
the Rocky Mountain region will allow St. Mary to focus its efforts on more
compelling growth opportunities both in the region and throughout the
Company. The proceeds from these properties and other minor sales,
combined with our anticipated cash flows from operations, are expected to fund
our 2010 capital budget. These transactions demonstrate our
commitment to building a focused portfolio of resource plays from which we can
create value for our shareholders.”
ROCKY
MOUNTAIN OIL PACKAGE
St. Mary
has entered into agreements to sell the previously announced package of
non-strategic Rocky Mountain oil properties in two separate transactions for a
total of $267 million.
The
Company entered into an agreement in late December 2009 with Legacy Reserves
Operating LP, a wholly-owned subsidiary of Legacy Reserves LP (NASDAQ: LGCY) to
sell the Wyoming portion of the divestiture package for $130
million. Closing is expected to occur in February 2010. On
January 7, 2010, St. Mary entered into an
agreement
to sell the North Dakota portion of the divestiture package to a private buyer
for $137 million. This transaction is anticipated to close in March
2010. Both transactions are subject to customary purchase price
adjustments and closing conditions.
HANGING
WOMAN BASIN AND MISCELLANEOUS DIVESTITURES
On
December 18, 2009, St. Mary closed the sale of all operated and non-operated
properties in the Hanging Woman Basin coalbed methane project in Wyoming and
Montana in a transaction with J.M. Huber Corporation. St. Mary has
also recently sold or entered into agreements to sell minor asset packages of
other non-strategic properties throughout the Company, the majority of those via
auction. Total proceeds from these divestitures are anticipated
to be approximately $40 million, subject to customary closing
adjustments.
INFORMATION
ABOUT FORWARD LOOKING STATEMENTS
This
release contains forward looking statements within the meaning of securities
laws, including forecasts and projections. The words “will,”
“anticipate,” “expect,” and similar expressions are intended to identify forward
looking statements. These statements involve known and unknown risks,
which may cause St. Mary’s actual results to differ materially from results
expressed or implied by the forward looking statements. These risks
include such factors as the volatility and level of oil and natural gas prices,
the uncertain nature of the expected benefits from the acquisition and
divestiture of oil and gas properties, the pending nature of reported
divestiture plans and agreements for certain non-core oil and gas properties as
well as the ability to complete divestiture transactions and the uncertain
nature of the amount of proceeds that may be received from divestitures,
uncertainties related to changes in the taxation regimes in the jurisdictions in
which the Company operates, uncertainties inherent in projecting future rates of
production from drilling activities and acquisitions, the ability of purchasers
of production to pay for those sales, the availability of credit, debt, and
equity financing, the ability of the banks in the Company’s credit facility to
fund requested borrowings, the ability of hedge counterparties to settle hedges
in favor of the Company, the imprecise nature of estimating oil and gas
reserves, the availability of additional economically attractive exploration,
development, and property acquisition opportunities for future growth and any
necessary financings, unexpected drilling conditions and results, unsuccessful
exploration and development drilling, drilling and operating service
availability, the risks associated with the Company’s hedging strategy, and
other such matters discussed in the “Risk Factors” section of St. Mary’s 2008
Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q which
are filed with the SEC. Although St. Mary may from time to time
voluntarily update its prior forward looking statements, it disclaims any
commitment to do so except as required by securities laws.
ABOUT
THE COMPANY
St. Mary
Land & Exploration Company is an independent energy company engaged in the
exploration, exploitation, development, acquisition, and production of natural
gas and crude oil. St. Mary routinely posts important information
about the Company on its website. For more information about St.
Mary, please visit its website at stmaryland.com.