The biggest Western Slope natural gas producer is buying Ursa Resources’ business and wells two months after the company filed for chapter 11 protection, the Denver Business Journal reported. Houston-based Terra Energy Partners LLC agreed to pay $60 million to acquire Denver-based Ursa Piceance Holdings LLC and its subsidiaries after a bankruptcy court sale. The sale includes its 41,000 acres of mineral rights and 579 operating wells. Privately held Terra Energy Partners succeeded with a bid at auction in federal bankruptcy court in Delaware that was declared the winning offer Thursday. The sale process is scheduled to be finalized in a Nov 19 court hearing. Terra Energy, which operates as TEP Rocky Mountain, produces natural gas from 5,300 wells on 370,000 acres in northwest Colorado’s Piceance Basin. The deal is the latest transaction in the oil and natural gas industry that has been shaken by a historic collapse in the demand for fuels triggered by the COVID-19 pandemic. Coming off years of weak natural gas prices, the collapse of crude oil has pushed many companies into filing for bankruptcy protection, including at least four others in Colorado. Ursa Piceance Holdings and its operating and pipeline subsidiaries filed for bankruptcy protection Sept. 2 with $282 million in debt on its books.
