Sources say that ConocoPhillips is close to selling Oklahoma assets to Stone Ridge Energy.

Three people with knowledge of the situation said on Tuesday that ConocoPhillips, a U.S. oil producer and gas company, is in advanced discussions to sell assets in Oklahoma for $1.3 billion to Stone Ridge Energy.

One source said that Oklahoma City's Flywheel Energy will manage the assets for Stone Ridge Energy.

Sources cautioned, however, that there is no guarantee of a deal and the talks could end without an agreement. The sources also spoke under condition of anonymity in order to discuss private discussions.

ConocoPhillips refused to comment. Stone Ridge Energy, a division of New York's Stone Ridge Asset Management that focuses on energy, has not responded to a comment request.

Flywheel, whose investors include commodities trader Gunvor, has not responded to comments immediately.

In April, it was reported that ConocoPhillips hired Moelis & Co. to handle an auction for the assets. These include operations in the Anadarko Basin that the energy producer inherited as part of the $22.5 billion acquisition of Marathon Oil in 2013.

Stone Ridge Energy has agreed to acquire 300,000 acres net (121,406 ha) of the Anadarko Shale Formation, which produces about 39,000 barrels equivalent oil per day. About half of this is natural gas.

ConocoPhillips would be able to surpass its target of raising $2 billion through divestments if the asset sale was completed. ConocoPhillips set this target after taking on $5.4 billion in Marathon's debt through the acquisition. (Reporting and editing by David French, Margueritachoy and Cynthia Osterley in New York)

(source: Reuters)