By OGJ editors
HOUSTON, Nov. 1 -- Kerr-McGee Corp. has agreements with multiple parties for the sales of onshore oil and gas properties with gross proceeds expected to be $510 million.
The Oklahoma City company said on Oct. 31 that it will realize net, after-tax proceeds of $330 million from the sales, which are expected to close by yearend.
The divestiture involves noncore assets in Texas, Oklahoma, Louisiana, Colorado, and Wyoming. Proved reserves associated with the divestitures are 48 million boe, of which 50% are undeveloped. The properties produce 8,000 boe/d.
The sale includes estimated proceeds from an auction of minor properties, a recently closed property trade, and the previously announced agreement with Encore Acquisition Co., Fort Worth.
Encore agreed to buy oil and gas properties in the Permian and Anadarko basins from Kerr-McGee for $104 million (OGJ Online, Oct. 19, 2005).