Oneok to Sell Production Businesses

Monday, September 19th 2005, 4:08 pm
By: News On 6

TULSA, Okla. (AP) _ Energy trading firm Oneok Inc. said Monday that it is selling its oil and gas production companies to privately held Txok Acquisition Inc. for $645 million.

Oneok said it will use the proceeds to reduce debt and focus its operations on its other businesses, including natural gas distribution, gas gathering and processing, pipelines and storage, energy services and natural gas liquids.

The deal includes natural gas and oil properties in four fields in Oklahoma and Texas that have estimated reserves of 240 billion cubic feet of natural gas equivalent, Oneok said.

The companies expect the transaction to close by Oct. 14 and Oneok said ``substantially all'' of its production employees will be offered positions by Dallas-based Txok.