Bayswater to sell DJ Basin assets to Prairie Operating company in $603m deal

Bayswater Exploration and Production, a Denver-based oil and natural gas development company, has announced the sale of its Denver Julesburg Basin (DJ Basin) assets to Prairie Operating Company in a deal valued at approximately $603 million. The transaction, structured as a combination of cash and stock, underscores Bayswater’s strategic focus on capital efficiency while maintaining its commitment to Colorado’s energy sector.

Bayswater’s Strategic Divestment: A Move Towards Optimised Capital Returns

The asset sale includes around 24,000 leased acres, 300 producing horizontal wells spread across 30 pads, and an average production capacity of approximately 25,000 barrels of oil equivalent per day (BOED). The agreement also covers nine newly drilled but uncompleted horizontal wells and a Bayswater-operated saltwater disposal system, highlighting the scale and operational significance of the transaction within Colorado’s energy landscape.

Steve Struna, President and Chief Executive Officer of Bayswater Exploration and Production, described the deal as a milestone reflective of the company’s growth trajectory in the DJ Basin. “This agreement represents the culmination of years of work by our talented and dedicated DJ Basin team. Since 2009, we’ve built a high-quality asset, earned a reputation as a responsible operator, and positively impacted the Weld County communities,” Struna stated.

This transaction aligns with Bayswater’s core business model, which focuses on acquiring, developing, and monetising oil and gas assets to generate accretive returns for investors. The company’s strategic decision to divest its DJ Basin assets reflects its broader goal of reallocating capital to high-return projects, reinforcing its operational resilience amid evolving market conditions.

What Does the DJ Basin Asset Sale Mean for Colorado’s Energy Sector?

Bayswater’s DJ Basin asset sale marks a significant shift in Colorado’s oil and gas industry. The DJ Basin, known for its rich hydrocarbon reserves and strategic importance in the U.S. energy market, has been a focal point for numerous exploration and production companies. This deal with Prairie Operating Company not only highlights the basin’s continued value but also signals potential shifts in operational strategies across the region.

While the sale represents a substantial divestment, Bayswater remains committed to Colorado’s energy sector. The company will retain and operate 70 horizontal wells in the DJ Basin, with a combined production output of approximately 18,000 BOED. Bayswater also continues to actively drill with one rig operating within its remaining acreage, demonstrating its intent to maintain a strong presence in the region.

Struna emphasised the company’s future in Colorado, stating, “We remain committed to operating in the DJ Basin and look forward to rebuilding our Colorado footprint with newly raised capital. Our focus remains on responsibly producing Colorado oil and natural gas—the cleanest energy molecules on the planet.”

Bayswater’s Growing Footprint in the Midland Basin

In addition to its Colorado operations, Bayswater has a significant presence in the Northern Midland Basin in Texas, where it holds 50,000 acres under active development. The company operates 140 horizontal wells, producing approximately 20,000 BOED. This robust portfolio also includes a large saltwater disposal system and Tejon Treating and Carbon Solutions—a Bayswater-affiliated business focused on gas gathering and treating in the Midland Basin.

These Texas assets remain unaffected by the DJ Basin transaction, allowing Bayswater to continue its growth trajectory in one of the most prolific oil-producing regions in the United States. The company’s diversified asset base across Colorado and Texas provides a strategic advantage, balancing production portfolios while capitalising on regional market dynamics.

Expert Insights on the Impact of the Bayswater-Prairie Deal

Industry experts view Bayswater’s DJ Basin asset sale as a strategic move to optimise capital allocation while maintaining operational flexibility. The deal reflects broader trends in the U.S. energy sector, where companies are increasingly focusing on capital efficiency, portfolio optimisation, and sustainable growth amid fluctuating commodity prices.

Energy analysts suggest that such transactions can drive operational synergies, particularly when assets are acquired by companies like Prairie Operating Company, which may bring new investment and operational strategies to enhance productivity. The deal could also influence competitive dynamics within the DJ Basin, prompting other operators to reassess their asset portfolios and growth strategies.

Moreover, Bayswater’s continued investment in Colorado and Texas underscores its long-term commitment to responsible energy development. The company’s focus on sustainability, including practices aimed at reducing environmental impacts, aligns with evolving regulatory frameworks and stakeholder expectations in the energy sector.

Bayswater’s Vision for Sustainable Energy Development

As Bayswater transitions following the DJ Basin asset sale, the company’s vision remains rooted in responsible energy development. Bayswater continues to implement best-in-class practices designed to minimise the environmental footprint of its operations, focusing on air quality, water management, and land stewardship.

The company’s belief that oil and natural gas development can coexist with environmental sustainability reflects a growing trend within the industry. Operators are increasingly adopting technologies and practices that support emissions reduction, resource efficiency, and environmental conservation, positioning themselves as responsible stewards of natural resources.

For Bayswater, the DJ Basin asset sale represents not just a financial transaction but a strategic pivot towards growth, sustainability, and long-term value creation in both Colorado and Texas.