By Shariq Khan
Stoneridge Energy has appeared as the top bidder at the Asset Flywheel Energy auction to manage its assets on behalf of Stoneridge, and ConocoPhillips says it is aiming to surpass its $2 billion divestiture target.
(Reuters) – US oil and gas producer ConocoPhillips (COP.N) is undergoing high consultation to sell Oklahoma assets to privately owned Stoneridge Energy for around $1.3 billion.
Oklahoma City-based Flywheel Energy, a private oil and gas company backed by Stone Ridge Energy, operates the assets on behalf of its supporters, one source said.
Sources warned that the transaction was not guaranteed and that consultations could still be terminated without agreement. They also spoke on the condition of anonymity to discuss private deliberations.
Conoco Phillips declined to comment. Stoneridge Energy, the energy-centric arm of New York-based Stoneridge Asset Management, did not immediately respond to requests for comment.
Also, the flywheel counting merchandise trader gangbal among investors did not respond immediately to requests for comment.
Reuters reported in April that Conoco Phillips hired investment bank Maurice & Co (MC.N) to manage the auction of assets. It consists of operations in the Anadarko Basin, which is inherited by energy producers as part of last year’s $22.5 billion acquisition of Marathon Oil.
As part of the deal, Stoneridge Energy will acquire 300,000 acres (121,406 hectares) in the Anadarko Shale layer. It produces about 39,000 barrels of oil per day, about half of which is natural gas.
If completed, asset sales will help ConocoPhillips surpass its target and raise $2 billion from the sale. Conoco set its target after undertaking about $5.4 billion in marathon debt as part of its acquisition.
Reported by Sharik Khan of New York. Edited by David French, Marguerita Choy and Cynthia Osterman
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