Oil major ConocoPhillips (NYSE:COP) has entered into an agreement to sell its 86,000 net acres of Cedar Creek Anticline properties in North Dakota and Montana to Denbury Resources (NYSE:DNR), the company announced today. The properties, which produce roughly 13,000 barrels of oil equivalent per day, will sell for $1.05 billion.
In a statement, Conoco noted that the sale does not include any of its properties in the Bakken Shale, and said the transaction will allow it to "focus our investments in North Dakota and Montana on our significant Bakken unconventional position."
The sale is expected to close in the first quarter of 2013, but Conoco said it will be recording a $120 million after-tax gain on the sale in Q4 2012. Including this sale, Conoco notes it will have raised $12 billion from asset sales over the past year.
Denbury plans to fund the purchase from the $1.3 billion of cash it received from its Bakken sale and asset exchange with ExxonMobil completed in December 2012.
Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Denbury Resources and ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.