ConocoPhillips to sell Barnett assets to Lime Rock Resources for $230m

American multinational energy company ConocoPhillips has signed an agreement to sell Barnett assets to Lime Rock Resources for $230m.

The deal value includes net customary adjustments and is subject to satisfaction of specific conditions precedent.

The Barnett assets are located in Montague, Wise, Denton, and Cooke Counties in Texas, and the transaction is the first acquisition of Lime Rock Resources in the Fort Worth Basin.

Lime Rock Resources co-CEO Eric Mullins said: “The recent acquisition provides the Lime Rock Resources fund with an entry into the liquids-rich Barnett portion of the Fort Worth, which is a basin that we have been attracted to for several years.

“The acquisition comes with about 114,000 net acres and has relatively low associated water production rates.”

Production associated with the properties averaged 9,000 barrels of oil equivalent per day for the first half of the year, of which around 55% was natural gas while 45% was natural gas liquids.

The transaction of the deal is expected to close by the end of the year, and ConocoPhillips has plans to use the proceeds for general corporate purposes.

The Barnett assets deal follows ConocoPhillips’ agreement to sell a ConocoPhillips subsidiary to BP for an undisclosed price in July this year.

ConocoPhillips also signed simultaneous agreements to acquire BP’s 39.2% interest in the Greater Kuparuk Area in Alaska and BP’s 38% interest in the Kuparuk Transportation Company for an undisclosed price in the same month.