ConocoPhillips announced the sale of its San Juan Basin properties to Hilcorp San Juan LP, a partnership between Hilcorp Energy and The Carlyle Group. This deal is one of largest in the Rocky Mountains region in recent years, and one of the few sizeable Lower 48 transactions outside of the Permian in 2017. The consideration consists of US$2.7bn in cash and a contingent payment of up to US$300m. ConocoPhillips held the leading position in the San Juan Basin with nearly 1.3m net acres targeting the Mesaverde, Dakota, and Fruitland formations. The area was known for its shallow production declines, with the properties producing approximately 124,000 boe/d (78% gas) at the time of sale. Hilcorp is known for its ability to re-work mature assets and thus is a natural fit as acquirer of these well-established, producing fields. Coming hot on the heels of the US$13.3bn sale of Canadian assets to Cenovus, ConocoPhillips has now hit its already upgraded US$16bn divestment target for 2017.