HomeMy WebLinkAbout20250474.tiffEsther Gesick
From:
Sent:
To:
Cc:
Subject:
Attachments:
Karla Ford
Friday, February 7, 2025 8:50 AM
Commissioners
Bruce Barker; Jessica Reid; Esther Gesick; Brett Cavanagh; Jennifer Finch
FW: Bayswater Enters Sale Agreement for DJ Basin Assets
Basywater Press Release 2-7-25.pdf
Karla Ford X
Office Manager, Board of Weld County Commissioners
1150 O Street, P.O. Box 758, Greeley, Colorado 80632
:: 970.336-7204 :: kford@weld.gov :: www.weldgov.com
"Please note my working hours are Monday -Thursday 7:00a.m.-4:00p.m."
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed
and may contain information that is privileged, confidential or otherwise protected from disclosure. if you have received this communication in error, please
immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of
this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: Steve M. Struna <sstruna@bayswater.us>
Sent: Friday, February 7, 2025 8:17 AM
Subject: Bayswater Enters Sale Agreement for DJ Basin Assets
This Message Is From an External Sender
This email was sent by someone outside Weld County Government. Do not click links, or open attachments unless you recognize
the sender and know the content is safe.
Good morning,
I wanted to make you aware of some significant changes at Bayswater. Today, Bayswater announced an
agreement with Prairie Operating Co. (Prairie) for the sale of a large portion of our DJ Basin, Colorado assets for a
purchase price of approximately $603 million. This transaction is contingent upon Prairie raising the required debt
and equity in the public markets to fund the purchase. If they are successful in doing so, we will likely close the
transaction on or before February 15, 2025. The press release announcing the deal is attached for your reference.
I wanted to personally reach out and make you aware of this transaction and that even with this change,
Bayswater remains committed to Colorado and the DJ Basin. We have operated here since 2009 and are retaining
a substantial remaining footprint that we intend to grow with capital from our latest capital raising efforts. We
aren't going anywhere.
C o NURu n ; C opt : 0x15
o2/tq
2025-0474
Bayswater is privately capitalized with a business model that is designed to acquire, develop, and monetize assets
with the goal of an accretive return of capital to our investors. That successful cycle allows us to re -raise and
subsequently re -deploy capital into new assets and development programs. This sale represents that natural
lifecycle in our business.
Bayswater has been developing the assets included in this transaction since 2017 and we have maintained a
mostly continuous drilling and completion program these past seven years. We successfully navigated the COVID-
19 pandemic, significant regulatory changes, and major commodity price and service cost fluctuations, all while
now being able to monetize this asset through the sale to Prairie. I have known the Prairie principals for a long time
and have close relationships with their executive team and board of directors. They are capable Colorado
operators and financially strong. I think it's terrific to have a new public entrant here in the D1 Basin, and I look
forward to their involvement in Colorado oil and gas.
I'm happy to speak with you at any time as to this transaction or Bayswater's plans moving forward. Please feel
free to reach out to me.
Sincerely,
Steve Struna
President & CEO
Bayswater
2
elk BAYSWATER
FOR IMMEDIATE RELEASE
February 7, 2025
Bayswater Enters Sale Agreement for DJ Basin Assets
DENVER —Bayswater Exploration and Production (Bayswater), a Denver -based oil and natural gas
development company, is pleased to announce it has entered into an agreement to sell assets in the
Denver Julesburg Basin (DJ Basin) to Prairie Operating Co. (Nasdaq: PROP), in a cash and stock
transaction valued at approximately $603 million.
"Today's agreement represents the culmination of years of work by our talented and dedicated DJ Basin
team," said Steve Struna, President & CEO of Bayswater "Bayswater has been operating in the DJ Basin
since 2009. We are proud of the high -quality asset we have built, our reputation as a responsible
operator, and the positive impact we have had in surrounding Weld County communities."
The sale includes (approximately) 24,000 leased acres, 300 producing horizontal wells on 30 pads, and
25,000 barrels of oil equivalent per day (BOED). Also included is nine newly drilled but not yet
completed horizontal wells, and a Bayswater operated saltwater disposal system.
Bayswater is privately capitalized with a business model that is designed to acquire, develop, and
subsequently monetize assets with the goal of an accretive return of capital to investors. The firm of
Davis Graham was Bayswater's legal advisor for the transaction.
Bayswater remains committed to Colorado and operating in the DJ Basin. Following this transaction,
Bayswater will retain and operate 70 horizontal wells producing approximately 18,000 BOED and
currently has one rig actively drilling on the remaining position. Additionally, Bayswater holds 50,000
acres in the Northern Midland Basin in Texas that is under active development, including 140 horizontal
wells producing approximately 20,000 BOED, a large saltwater disposal system, and Tejon Treating and
Carbon Solutions —a Bayswater affiliate owned gas gathering and treating business in the Midland Basin.
These Texas assets were unaffected by this transaction.
"This sale is a key part in the natural lifecycle of our business. I am grateful to all my Bayswater field and
office colleagues, our vendors, suppliers, and local community stakeholders," said Struna. "We remain
committed to operating in the DJ Basin and look forward to rebuilding our Colorado footprint with newly
raised capital and continuing to responsibly produce Colorado oil and natural gas —the cleanest energy
molecules on the planet."
###
Bayswater is a privately held oil and natural gas development company with operations in Colorado and
Texas, employing multiple best -in -class practices focused on reducing the air, land, and water impacts of
their operations. Bayswater is committed to responsible energy development and the belief that the
development of oil and natural gas resources and the stewardship of a pristine, sustainable environment,
are not mutually exclusive. To learn more, visit www.bayswater.us.
Page 1 of 2
tIll BAYSWATER
le
Media Contacts:
Steve Struna I President & CEO I Bayswater 1303.893.2503
Mark Truax I Communications I Bayswater 1720.724.0298 I mark.truax@pacweststrategies.com
Page 2 of 2
Hello