September 2021 turned out to be a really big month for O&G M&A.
Reuters is breaking another big O&G story this week by announcing ConocoPhillips (NYSE:COP) is offering for sale properties in West Texas that extend into New Mexico. All of the assets are located within the Central Basin Platform (CBP) and Northern Shelf formations which spread across West Texas and New Mexico. The fields were described as "legacy" which is oilman speak for "conventional". Since COP has drilled horizontals in that area, we won't know for sure until an official press release is issued.
Conoco just unloaded $9.5 billion in cash on its SHELL Permian acquisition, so its not surprising to see the company clean up its portfolio and generate a bit of cash in the process. The company said earlier this week that it is planning to divest as much as $5 billion in assets by 2023, with a focus on less productive parts of its Permian portfolio and some acreage in Alaska.
Initial bid proposals are due on 13 October for both areas, which are said to produce a combined total of about 13,000 boe per day.