SHARE
Newfield Executive Vice President and CFO Larry Massaro

Newfield sold its Granite Wash assets to Oklahoma-based exploration and production company Templar Energy for $588 million, Newfield said Wednesday.

The sale is effective July 1, 2014 and is expected to close in the third quarter of 2014.

Newfield’s Granite Wash assets include approximately 42,000 net acres.

The site’s current net daily production is nearly 65 millions of cubic feet equivalent, about 60 percent being natural gas.

Granite Wash had proved net reserves of about 38 million barrels of oil equivalent at the end of 2013.

The acreage runs from the Texas panhandle to southwest Oklahoma.

Templar, a subsidiary of the private equity firm First Reserve Corp., acquired 7,000 net acres in Oklahoma and the Texas panhandle in 2013, Oil & Gas Journal said.

There are about 2,600 operating wells in the Granite Wash.

Newfield intends to use the proceeds from the sale to reduce debt.

“Today’s sale further demonstrates our willingness to monetize non-strategic assets, high-grade our portfolio, accelerate our domestic growth programs and strengthen our balance sheet,” Newfield Executive Vice President and CFO Larry Massaro.