BP has sold a package of natural gas assets in Texas to privately held Pantera Acquisition Group for $390 million as the UK supermajor continues to overhaul its US onshore operations.
The sale includes about 270,000 acres in Sherman and Moore counties in the Texas Panhandle where BP produces about 27 million cubic feet of natural gas equivalent (43% liquids) from about 500 sour gas wells in the Texas Hugoton and West Panhandle fields, a BP spokesman confirmed.
The buyer is an affiliate of Amarillo, Texas-based Pantera Energy, which has been active in the Panhandle area since 1982.
BP has indicated it would take offers on the package earlier this year.
“This part of the field is mature and better suited for a company that specialises in late-life basin operations,” a BP spokesman said at that time. “The decision is consistent with BP’s strategy to actively manage its portfolio of assets, with a focus on value over volume.”
In 2012, BP sold its Hugoton assets in Kansas to Linn Energy for $1.2 billion.
The latest deal is expected to close at the end of the month.
Earlier this year, BP announced plans to operate its holdings in the onshore Lower 48 as a separate entity to make the unit more competitive.
While the change would not spinoff the holdings – BP has said it will retain ownership of the operations – the new company will report earnings on a standalone basis, will have a new name and employees will be moved to a separate location apart from BP’s main offices in Houston.
In fall 2013, BP announced plans to sell $10 billion in assets to high-grade its portfolio.