Freeport-McMoran to sell California oil and gas assets for $742 millionStaff Writer | October 14, 2016
Freeport-McMoran has agreed to sell its onshore California oil and gas properties to Sentinel Peak Resources California for $742m.
Acquisition Sentinel Peak Resources California is buying
The purchasers will also assume future abandonment obligations associated with the properties, which had a book value of around $0.1bn at the end of June.
Following completion of this transaction and the previously announced Deepwater Gulf of Mexico (GOM) sale, Freeport's portfolio of oil and gas assets would include oil and natural gas production onshore in South Louisiana and on the Shelf of the GOM, oil production offshore California and natural gas production from the Madden area in Central Wyoming.
In the second quarter of 2016, these properties produced an average of 8.6 thousand barrels of oil and natural gas liquids per day and 78 million cubic feet of natural gas per day.
Freeport said net cash proceeds from the deal - expected to close in the fourth quarter - will be used to pay down debt. It does not expect to record a material gain or loss on the transaction. ■