Phillips to sell holdings in Alberta's Zama field

Phillips Petroleum Resources Ltd., Calgary, wants to sell its interests in the Zama oil and gas fields in northern Alberta, which produce 16,500 boe/d. Jim Taylor, president of the Canadian unit of Oklahoma-based Phillips, said the company plans to redeploy assets into core areas. It will retain about 2,000 boe/d of production in Canada.


CALGARY�Phillips Petroleum Resources Ltd., Calgary, wants to sell its interests in the Zama oil and gas fields in northern Alberta, which produce 16,500 boe/d.

Jim Taylor, president of the Canadian unit of Oklahoma-based Phillips, said the company plans to redeploy assets into core areas. It will retain about 2,000 boe/d of production in Canada.

Phillips recently acquired the Alaskan interests of Atlantic Richfield Co. and also has expanded operations in China and South America. Taylor did not disclose a target price for the Zama assets but said the company would consider a swap for natural gas assets in the US.

Waterous & Co., Calgary, is handling the sale of the Zama properties and hopes to complete the sale by the end of March. A data room has been opened for potential buyers. Waterous said the property was the largest single Canadian asset ever made available in a public offering.

The Zama properties produce about 90 MMcfd of gas and 7,500 b/d of oil. Phillips said Zama will generate cash flow of about $155 million this year. The sale package includes three sour gas plants and 149 miles of gas gathering systems.

More in Pipelines