Riviera Resources Inc. has agreed to sell its interest in oil and natural gas properties in Michigan to an undisclosed buyer for $44.5 million.
The deal, expected to close by the end of June, includes properties with 1,400 mature legacy wells with proved developed reserves of 193 Bcfe. Riviera said it would retain its properties in Illinois.
The company has not yet determined what it plans to do with the proceeds, but management expects to net $41 million from the sale. Options for the cash include share repurchases, share tenders, dividends or investment in the upstream business or subsidiary Blue Mountain Midstream LLC.
Riviera became an independent company following its spinoff from Linn Energy Inc. last year. The deal to sell its Michigan assets comes after another agreement the company announced in April to sell its interest in properties in the Hugoton Basin of southwestern Kansas for $31 million.
Riviera's portfolio includes assets in the Drunkards Wash Field in Utah's Uinta Basin, as well as assets in Illinois, East Texas and North Louisiana. It also holds assets in the northwest part of Oklahoma's Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, aka the STACK.