ConocoPhillips has entered into a definitive agreement to sell its interests in the Barnett to an affiliate of Miller Thomson & Partners LLC for US$305 million in addition to net customary adjustments.
Full year 2016 production associated with the Barnett assets was 11 000 boe/d, of which approximately 55% was natural gas and 45% was natural gas liquids. Year end 2016 proved that reserves were approximately 50 million boe.
As of 31 May, the net book value of the assets was approximately US$0.9 billion. The company expects to record a non-cash impairment on the assets in 2Q17. The transaction is subject to specific conditions precedent being satisfied, including regulatory approval, and is expected to close in 3Q17.
The impact to full year 2017 production guidance is expected to be less than 5000 boe/d, dependent on timing of closing. The company does not expect any material impact to 2017 cash flow or its other 2017 guidance items as a result of this transaction.
Proceeds from this transaction will be used for general corporate purposes.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/30062017/conocophillips-to-sell-barnett-assets/