Marathon To Unload Its Alaska Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$375.0MM
Description

To buy operated & nonop interests across 10 fields in AK Cook Inlet, gaining 93 MMcf/d & 112 BO/d, 17 MMBOE proved.

Hilcorp Alaska LLC, a subsidiary of privately held, Houston-based Hilcorp Energy Corp., plans to purchase substantially all of the Alaska assets of Marathon Oil Corp., Houston, (NYSE: MRO) for an undisclosed price.

Marathon has operated and nonoperated interests across 10 fields in the Alaska Cook Inlet. In 2011 net production averaged approximately 93 million cubic feet of gas per day and 112 barrels of oil per day. Net proved reserves are 17 million barrels of oil equivalent.

Also included is gas storage and interests in gas pipeline transmission systems. Marathon Oil had approximately 12.5 billion cubic feet of natural gas in storage at the end of 2011.

The sale does not include Marathon Oil's Alaska onshore drilling rig, which is being marketed separately.

The deal is expected to close during the fall.