Wexpro Company has entered into a US $106.4 million definitive agreement to expand its working interests in gas-producing properties, particularly in Vermillion Basin located southwest of Wyoming.
The new investments would benefit both the utility customers of Questar Corporation in Utah as well as the Wyoming utility consumers. Accordingly, Wexpro owns 46% in the Trail Unit in the basin and the new deal would bump up its interests to 88%. It will also boost its net proved reserves by 118 billion cubic feet equivalent.
Wexpro has a standing agreement with Questar in 1981 which states that any acquisition or gas production by Wexpro will be sold to Questar and Wyoming.
Ron Jibson, Questar president and CEO, said they are excited by Wexpro's new acquisition and its impact on Questar's portfolio. "It's in the heart of our operations and adds value to one of our premier assets."
Wexpro is also looking to expand and add additional 172 gas well locations in the near future.
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