US independent Marathon Oil said on April 11 that it had agreed to sell some non-core assets for US$950 million.
The sale, which includes a 10% stake in the Shenandoah field in the deepwater Gulf of Mexico, will take Marathon’s total sales since August 2015 to around US$1.3 billion.
The firm said it would sell all of its Wyoming upstream and midstream assets for US$870 million, excluding closing adjustments.
The Wyoming properties produced an average of 16,500 barrels of oil equivalent per day in the first quarter of 2016, the firm said. The assets also include the 570-mile (917-km) Red Butte pipeline, which is the only export pipeline in the area.
The Wyoming asset sale is expected to be completed by the middle of the year, the company said.
In separate deals, the producer has also agreed to sell some undeveloped acreage in West Texas, the Shenandoah stake and operated gas assets in the Piceance Basin in Colorado for a combined total of roughly US$80 million.
The Houston-based company has surpassed its targeted range of US$750 million to US$1 billion in sales of non-core assets since August, said Marathon’s CEO, Lee Tillman.
“Ongoing portfolio management continues to drive the simplification and concentration of our portfolio to lower risk, higher return US resource plays and support our 2016 objective of balance sheet protection,” he added.
Marathon had net proven reserves of 2.2 billion barrels of oil equivalent in North America, Europe and Africa as of the end of 2015.
The Shenandoah field is operated by Anadarko Petroleum and is located on Walker Ridge Block 52. The Shenandoah-2 appraisal well encountered over 1,000 net feet (305 metres) of oil pay in multiple Lower Tertiary reservoirs. Anadarko owns a 30% interest in the field, ConocoPhillips has 40% and Cobalt International Energy holds 20%.