Oil & Gas News

ConocoPhillips looking to divest gas assets in Texas and Oklahoma

Conoco Anadarko
Operated Anadarko Basin assets comprise 261,200 net acres

ConocoPhillips is considering selling its gas-producing assets in the Anadarko basin of North Texas and Western Oklahoma, in the US, reported Reuters, citing two sources.

According to documents seen by the news agency, the shale oil producer is working with an undisclosed adviser for the potential gas assets sale.

The assets considered for sale include both non-operated and operated leaseholds, as well as royalty interests in the SCOOP and STACK formations of Oklahoma.

ConocoPhillips’ operated Anadarko assets comprise 261,200 net acres, producing approximately 8,000 barrels of oil equivalent per day (boepd).

The firm’s non-operated assets include 17,700 net acres in Oklahoma, with a production capacity of 3,000boepd, according to the marketing document.

The sale forms part of the oil company’s efforts to raise cash by divesting non-core land parcels.

According to the sources, the company is expected to raise nearly $200m by selling operated Anadarko assets, and approximately $100m from the sale of non-operated assets.

ConocoPhillips has started marketing both the operated and non-operated assets.

These assets could be divested to either a single bidder or separate parties.

In case the company doesn’t receive good offers, it could continue to hold onto one or both packages.

Last month, Bloomberg reported that ConocoPhillips is looking to sell over $1bn worth of assets in the Permian Basin.

The company was working with an undisclosed adviser to launch an auction for these assets.

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Conoco Lower48 Position

The company’s large onshore Lower 48 position of 10.1 million net acres prior to the acquisition of Concho Resources Inc., much of it held by production, gives access to scalable, low cost of supply inventory that can generate many years of future development. The Lower 48 segment is comprised of two regions covering the Gulf Coast and Great Plains. Current major focus areas for the Lower 48 include the Eagle Ford, Bakken and Permian Basin.

In early 2020, the company sold its Niobrara assets in Colorado and its Waddell Ranch assets in the Permian Basin.

On Jan. 15, 2021, ConocoPhillips completed the transformational acquisition of Concho Resources Inc., an independent oil and gas exploration company with operations across New Mexico and West Texas. The addition of 550,000 net acres through the Concho acquisition complements the company’s position in the Delaware and Midland Basins in the Permian, which together with major positions in the Eagle Ford and Bakken trends establish ConocoPhillips as a leader in Lower 48 unconventional development.

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