BP is selling natural gas assets in the Texas Panhandle to privately held Pantera Acquisition Group LLC, BP said July 8.

The companies have signed an agreement under which Pantera will acquire BP’s interests in the Panhandle West and Texas Hugoton gas fields for $390 million, BP spokesman Brett Clanton said in a news release.

BP’s sale is part of a $10 billion asset divestment program that the oil giant announced in October 2013. BP’s plan is to continue to focus on opportunities to unlock value and upgrade its portfolio while selling noncore assets.

The BP/Pantera deal covers more than 270,000 gross acres in Sherman and Moore counties, Texas, and includes approximately 500 BP-operated, low-rate, sour-gas wells producing about 5,000 barrels of oil equivalent per day (boe/d).

The low-decline gas properties have significant associated NGL and helium volumes. Current net production is about 27.6 million cubic feet equivalent, of which 43% is NGLs, plus 96 cubic feet per day of helium.

A Tudor, Pickering, Holt & Co. analyst said the sale was “immaterial” but continues the company’s non-core divestment strategy and in particular a high-grading of BP’s U.S. business, which will be run as an independent company.

BP’s selling price for its Texas Panhandle assets is $390 million, less than previous reports estimating $400-500 million. The deal works out to be about $80,000 per daily flowing barrel based on 5,000 boe/d of production. The transaction is expected to close on July 31.

BP continues to focus on opportunities to unlock value and upgrade its portfolio, Clanton said.

The company is focusing its business portfolio worldwide around key assets and strategic strengths and expects to divest $10 billion in assets before the end of 2015. Proceeds from the divestments are expected to be used predominantly for additional distributions to shareholders, with a bias to share buy-backs.

BP announced in 2013 an $8 billion share buy-back program following receipt of the net cash proceeds of about $12 billion from the divestment of its share in TNK-BP. By Oct. 25, 2013, it had repurchased $3.8 billion for cancellation.

The company’s capital spending has remained roughly flat at about $25 billion.

Pantera and BP are working to complete terms to provide risk management and gas marketing services. BP, through its Global Structured Products team, provides customers with energy hedging services and tailored risk management solutions.

Pantera is affiliated with Pantera Energy Co., a family owned company founded in 1982 and headquartered in Amarillo, Texas. The company targets assets considered to be underdeveloped and uses its expertise in drilling and operations to enhance the oil and gas production.

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