Divestitures

Onshore US Properties

During the first six months of 2016, we entered into certain onshore transactions for which we:


•	closed the divestiture of our Bowdoin property in northern Montana generating proceeds of $43 million and recognized a $23 million loss on sale of assets;


•	sold other certain onshore US crude oil and natural gas properties, generating net proceeds of $20 million. Proceeds were primarily applied to the DJ Basin depletable field, with no recognition of gain or loss;

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entered into a purchase and sale agreement for the divestiture of certain producing and undeveloped crude oil and natural gas interests covering approximately 33,100 producing and undeveloped net acres in the DJ Basin for $505 million, subject to customary closing adjustments. We received proceeds of $486 million and expect to receive the remaining consideration, subject to post-close adjustments, around year-end 2016. Proceeds were primarily applied to the DJ Basin depletable field, with no recognition of gain or loss; and


•	executed an acreage exchange agreement to receive approximately 11,700 net acres within our Wells Ranch development area in exchange for approximately 13,500 net acres primarily from our Bronco area, located southwest of Wells Ranch. No gain or loss was recognized for the transaction.

During the first six months of 2015, we sold certain onshore US crude oil and natural gas properties, generating net proceeds of $151 million. Proceeds were primarily applied to the DJ Basin depletable field, with no recognition of gain or loss, other than a de minimus gain in second quarter 2015.

Cyprus Project (Offshore Cyprus) During fourth quarter 2015, we entered into a farm-out agreement with a partner for a 35% interest in Block 12, which includes the Aphrodite natural gas discovery, for $171 million. In first quarter 2016, we received proceeds of $131 million related to the farm-out agreement and expect to receive the remaining consideration of $40 million, subject to post-close adjustments, in 2017. The proceeds were applied to the Cyprus project asset with no gain or loss recognized.

Offshore Israel Assets In November 2015, we executed an agreement to divest our 47% interest in the Alon A and Alon C offshore Israel licenses, which include the Karish and Tanin fields, for a total transaction value of $73 million. These assets were held for sale as of December 31, 2015, and the transaction closed in January 2016.

Subsequent Event On July 4, 2016, we signed a definitive agreement to divest a 3% working interest in the Tamar field, offshore Israel, for $369 million, subject to customary closing adjustments. Under the terms of the agreement, the purchaser has the option to elect, before closing, to purchase an additional 1% working interest at the same valuation. The divestiture is expected to close in the third quarter of 2016, with an effective date of January 1, 2016.