EOG Resources To Sell Gulf Of Mexico Assets

EOG Resources (NYSE: EOG), the independent oil and gas producer, has hired BMO Capital Markets to help the energy company sell its Gulf of Mexico assets as part of EOG's plan to shift more of its focus to oil production and move away from natural gas.

BMO said the assets include 22 gas production blocks in the Gulf that produce the equivalent of 26.9 million cubic feet of gas per day and $34 million of net annualized cash flow, according to Bloomberg News.

EOG said earlier this year that it would like to increase its oil output to 50% of total production and that it would look to sell $1.5 billion in assets to meet that objective.

BMO said EOG would like to sell all 22 blocks to one buyer, but added EOG would consider individual sales.