NorthWestern Energy (NWE) has completed the US$ 70.2 million purchase of operating and non-operating natural gas production interests in northern Montana's Bear Paw Basin from Devon Energy Production Company, L.P. (Devon). This purchase also includes Devon's 82% interest in the Havre Pipeline Company, LLC.
"We're pleased to have secured another gas production asset in Montana that will help provide long-term supply price stability and reliability for our customers," said Bob Rowe, Chief Executive Officer. "We're also pleased to welcome the newest members of the team to the NorthWestern Energy family. We look forward to getting to know them as co-workers in the Havre area." 29 former Devon employees accepted positions with NorthWestern Energy bringing the company's total Havre-area workforce to approximately 70 employees.
NorthWestern Energy purchased Devon's interests in about 900 wells that will produce approximately 5.6 billion ft3 in 2013. The facilities have 63 billion ft3 of net gas reserve and exist in the Bear Paw fields near NorthWestern's other natural gas production assets. Devon's interest also includes an 82% ownership in a limited liability company that owns and operates the Havre Pipeline consisting of 82 miles of transmission lines, 576 miles of gas gathering lines, and 21 compressors in Blaine, Chouteau and Hill Counties.
Estimating a 20 billion ft3 annual natural gas usage of NorthWestern's core customers, the 5.6 billion ft3 of 2013 production from the Devon transaction would represent about 28% of the supply portfolio. Including the Battle Creek, existing Bear Paw assets and the Devon transaction, NorthWestern production would supply 37% of the core customer needs.
NorthWestern Energy currently owns gas production interests in the Battle Creek Field and the Bear Paw Basin which extends from the Missouri River North to the Canadian Border. Pipeline assets associated with the gas production include Havre Pipeline, Bear Paw, Willow Creek, Lodge Creek and Battle Creek gathering systems, all located in north-central Montana.
Adapted from press release by Hannah Priestley-Eaton