The Houston-based arm of BP plc expects to complete a transaction by the end of the month to hand off some of its natural gas-rich properties in the Texas Panhandle and Texas Hugoton field to Pantera Energy Co. for $390 million.
BP America Production Co. spokesman Brett Clanton told NGI's Shale Daily on Tuesday the deal was signed with Pantera Acquisition Group LLC. BP Energy Co., which provides hedging and risk management services, is working with Pantera to complete a gas marketing services deal as part of the sale, he said.
The properties being sold cover about 270,000 gross acres in Sherman and Moore counties. Included are about 500 BP-operated, low-rate, sour gas wells now producing about 5,000 boe/d. The gas properties hold "significant" associated natural gas liquids (NGL) and helium volumes, Clanton said.
Current net production is 27.6 MMcfe/d, 43% NGLs, and 96 Mcf/d of helium. BP still would operate 1,700 wells in the Panhandle after the sale.
The sale by BP continues a $10 billion divestment program to upgrade the portfolio (see Daily GPI, Oct. 29, 2013). The oil major began streamlining its Lower 48 operations earlier this year to create a separate U.S. entity to better compete with other domestic operators (see Shale Daily, March 4). Clanton had no new details on that plan.
Total U.S. operations, including large leaseholds in the Gulf of Mexico, contribute around one-third of BP global energy reserves. BP already has written off its Utica Shale business on disappointing appraisal results (see Shale Daily, April 29).
Amarillo, TX-based Pantera is a family-owned company founded in 1982 by Scott Herrick, who is vice president. Jason Herrick is president. The producer's initial projects were in the Texas Panhandle and in Western Oklahoma. It owns and operates more than 800 wells today, with gross production of more than 25 MMcf/d of liquids-rich gas and 700 b/d of oil.
Tudor, Pickering, Holt & Co. analysts said the transaction was immaterial to BP's overall portfolio but would help to high-grade the U.S. business.
"The deal works out to be $80,000/d flowing bbl based on 5,000 boe/d of production," 57% weighted to gas, the analysts said.