ConocoPhillips to sell interests in Barnett shale field in US for $305m
Production and exploration company ConocoPhillips has signed an agreement to sell its interests in the Barnett shale field in the US to an affiliate of Miller Thomson & Partners for $305m, as it continues to divest its non-core assets as part of a business consolidation initiative.
The deal follows the sale of ConocoPhillips’ 50% non-operated interest in the Foster Creek Christina Lake oil sands partnership, as well as the majority of its western Canada Deep Basin gas assets to Canada-based Cenovus Energy in May.
An agreement was also signed in April to sell the company’s interests in the San Juan Basin to an affiliate of Hilcorp Energy Company for a total value of up to $3bn.
The company noted that sale proceeds from the Barnett transaction will be used for general corporate purposes.
The Barnett assets produced 11 thousand barrels of oil equivalent per day (mboe/d) for full-year 2016, with proved reserves of around 50 million barrels of oil equivalent.
ConocoPhillips expects to record a non-cash impairment charge in the second quarter of this year relating to the transaction.
The sale is scheduled to close in the third quarter of this year, subject to the fulfilment of certain conditions such as regulatory approval.
ConocoPhillips has further noted that the impact of the sale of Barnett to full-year 2017 production guidance is expected to be less than five mboe/d.
The company produced an average of 1,584 mboe/d for the three months ended 31 March 2017, with proven reserves of 6.4 billion boe as of 31 December last year.