BP intends to divest Texas Panhandle assets

BP America Production Co. said it intends to divest assets in the Hugoton and Panhandle West fields in Sherman and Moore counties in the Texas Panhandle. The company will retain deep rights below the base of the Brown Dolomite, it said.

BP owns more than 270,000 gross acres in the two counties, encompassing 830 leases, 475 operated wells—a majority of which BP owns 100% working interest—along with 37 nonoperated wells. Other operators include ConocoPhillips Co. and Pantera Petroleum Inc.

The helium and liquids-rich sour gas play has total current BP production of 4,600 boe/d, NGL production of 2,000 b/d, residue gas production of 15 MMcfd, and helium production of 96 Mcfd.

The Eagle Rock gathering system serves as the primary field gathering system for Sherman and Moore counties, receiving 80% of BP’s production (OGJ Online, Aug. 13, 2012). The remaining gas is gathered by DCP Midstream Partners LP.

BP in 2012 sold its Kansas Hugoton assets to Linn Energy LLC for $1.2 billion (OGJ Online, Feb. 28, 2012). In February, Occidental Petroleum Corp. agreed to sell its Hugoton assets spanning southwest Kansas, the Oklahoma panhandle, and eastern Colorado to an undisclosed buyer for $1.4 billion (OGJ Online, Feb. 13, 2014).

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