Templar Energy LLC, Oklahoma City, has agreed to purchase Granite Wash assets from Newfield Exploration Co., Houston, for $588 million, effective July 1. The deal is expected to close in the third quarter.
The assets consist of 42,000 net acres with current net production of 65 MMcfd of natural gas equivalent, 60% of which is gas. Proved net reserves from the acreage totaled 38 million boe at yearend 2013.
Templar, an exploration and production company formed by First Reserve Corp. in 2012, previously acquired 7,000 net acres in Ellis and Roger Mills counties, Okla. (OGJ Online, Jan. 14, 2013); and assets in the Texas Panhandle from Forest Oil Corp. for $1 billion (OGJ Online, Oct. 4, 2013).
Larry Massaro, Newfield executive vice-president and chief financial officer, described the deal as consistent with the underlying objectives of his company’s 3-year plan.
“Today’s sale further demonstrates our willingness to monetize nonstrategic assets, high-grade our portfolio, accelerate our domestic growth programs, and strengthen our balance sheet,” he said.
Newfield also is in the process of completing repairs to its Pearl facility in the South China Sea. The topsides, near Hong Kong, were recently loaded on a barge and installation remains on schedule, pending weather conditions over the next month, the company reported.
Production is expected to begin in the fourth quarter, with gross facility capacity of 40,000 b/d of oil gross. Newfield says it intends to monetize its business in China.