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Kerr-McGee Agrees to Sell Noncore U.S. Assets for $330M

Kerr-McGee Corp. said late Monday it has entered into sales agreements with multiple parties to sell some noncore assets located in Texas, Oklahoma, Louisiana, Colorado and Wyoming. The sales, which are expected to net the company about $330 million, are part of a previously announced divestiture program of select U.S. onshore oil and natural gas properties.

Estimated proved reserves associated with the divestitures are approximately 48 million boe, of which 50% are undeveloped, and production from the divestiture properties currently approximates 8,000 boe/d, according to Kerr-McGee. There are approximately 2,300 wells and 100 fields included in this program, which is part of the company's effort to high grade its oil and natural gas portfolio by divesting selected lower-growth properties.

The proceeds include estimated proceeds from a November auction of some "minor value" properties, cash from a recently closed property trade and a previously announced sales agreement with Encore Acquisition Co. The transactions are expected to close by year's end.

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