ConocoPhillips sheds Barnett assets

ConocoPhillips has reached an agreement on the sale of its stakes in the Barnett Shale, the US multinational announced on Thursday.

The deal, valued at USD 305 million, was signed with a Miller Thomson & Partners affiliate. The transaction is expected to be finalised in the third quarter of this year.

ConocoPhilips’ assets in the Barnett produced 11,000 boepd in 2016. The majority of hydrocarbons output there, 55%, constituted natural gas. The remainder was natural gas liquids. At the end of 2016, the proven reserves of the assets in play were put at some 50 million boe.

The company’s assets in the Barnett were on the books for around USD 900 million. As such, ConocoPhillips said it expected “to record a non-cash impairment on the assets in the second quarter of 2017,” adding that it ruled out a “material impact to 2017 cash flow.”