ConocoPhillips agrees to sell Barnett assets for $230 million

Aug. 2, 2018
ConocoPhillips has agreed to sell its interests in the Barnett shale play to Lime Rock Resources, Houston, for $230 million plus net customary adjustments. Production associated with the assets for the first half of the year averaged 9,000 boe/d, of which 55% was natural gas and 45% was natural gas liquids, ConocoPhillips said.

ConocoPhillips has agreed to sell its interests in the Barnett shale play to Lime Rock Resources, Houston, for $230 million plus net customary adjustments.

Production associated with the assets for the first half of the year averaged 9,000 boe/d, of which 55% was natural gas and 45% was natural gas liquids, ConocoPhillips said. Without naming the seller, a release from Lime Rock Resources said the natural gas properties are primarily in Montague, Wise, Denton, and Cooke Counties, Tex. The acquired assets have “relatively low” associated water production rates and “substantial” horizontal development opportunities, said Charlie Adcock, co-CEO of Lime Rock Resources.

The transaction represents Lime Rock Resources’ first acquisition in the Fort Worth basin. As of yearend 2017, ConocoPhillips held about 114,000 net acres in the basin and 66,000 net acres in the Barnett, according to its annual report.

The definitive agreement follows an attempt by ConocoPhillips to sell the assets in 2017 (OGJ Online, June 29, 2017). An agreement signed in the year’s second quarter was later terminated.

Subject to conditions, the deal is expected to close by yearend.