* Expects to use proceeds to develop Permian assets
* Shares rise 9 pct
May 21 Laredo Petroleum Holdings Inc
said it would sell its assets in the Anadarko Basin in Western
Oklahoma and Texas to affiliates of EnerVest Ltd for $438
million to raise capital for its drilling activities in the
Laredo shares rose 9 percent in early morning trade.
EnerVest, which manages oil and gas properties on behalf of
institutional investors, will acquire about 104,000 net acres of
leasehold held by Laredo.
Laredo produced about 4.9 billion cubic feet of liquids-rich
natural gas and about 49,600 barrels of crude oil and condensate
from the Anadarko Basin in the first quarter.
The deal works out to $7,780 per thousand cubic feet
equivalent of daily production, analysts at Global Hunter
Securities wrote in a note to clients.
"Best read-through is for Chesapeake Energy, whose
Anadarko Basin assets are commonly overlooked," they wrote.
Analysts at SunTrust Robinson Humphrey said the deal would
also be a positive for Penn Virginia Corp, which holds
acreage close to Laredo's.
Laredo had raised more than expected from the asset sale,
The company expects to add two horizontal rigs in its Garden
City area of the Permian Basin in west Texas upon completion of
the deal, most likely during the third quarter.
Laredo was advised by Wells Fargo Securities LLC. Akin Gump
Strauss Hauer & Feld LLP was the company's legal adviser.
The company's shares were up 4.5 percent at $20.05 on the
New York Stock Exchange.