Clayton Williams Energy to pay down revolver with asset sale proceeds

By Angela McDaniels

Tacoma, Wash., April 18 - Clayton Williams Energy, Inc. will use the proceeds of an asset sale to reduce the amount outstanding on its revolving credit facility, according to a company news release.

At the closing of the transaction, the borrowing base under the facility will be reduced to $470 million from $585 million to account for the release of collateral, providing the company with about $99 million of additional availability under the facility.

The company will sell 95% of its Wolfberry oil and gas reserves, leasehold interests and facilities located in Andrews County, Texas, to an investor for $214 million, subject to customary closing adjustments. Closing is expected to occur Wednesday.

Clayton Williams Energy is an independent energy company located in Midland, Texas.

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