US-based oil and natural gas exploration and production company Continental Resources has signed two agreements with undisclosed buyers to divest around 32,590 non-core net acres in Oklahoma, US, for $147.5m.
Pursuant to the first agreement, Continental will sell 6,590 net acres of leasehold in the oil window of STACK in northern Blaine County, Oklahoma for $72.5m.
The second deal will see the sale of 26,000 net acres in the Arkoma Basin located in Atoka, Coal, Hughes and Pittsburg counties for $68m.
According to the company, the properties are non-strategic and do not contain significant proved reserves.
In addition, Continental is selling Oklahoma-based oil-loading facilities for $7m.
The company plans to use the sale proceeds from the transactions to reduce outstanding debt.
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By GlobalDataFurther non-core asset sales are also under the company’s consideration.
For the quarter ending 30 June this year, the company’s net loss stood at $63.6m.
Continental Resources chairman and CEO Harold Hamm said: "We're bringing on a lot of pad projects.
“Looking ahead, given the anticipated timing of additional pad projects in the Bakken and STACK, we expect third quarter 2017 production will average 240,000 to 250,000 barrels of oil equivalent per day (boepd), with 58% of production being crude oil."
The company has now revised its capital expenditure guidance for this year, from the existing $1.95bn to between $1.75bn and $1.95bn.
However, the annual production has been upgraded to between 230,000boepd and 240,000boepd owing to the operational efficiency and disciplined capital programme.