Sanchez Midstream Partners LP (NYSE MKT: SNMP) said July 5 it agreed to sell noncore production assets as the Houston-based company advances its midstream strategy in the Eagle Ford Shale.

In the agreement, Sanchez Midstream will sell oil and gas wells, leases and other associated assets and interests located in Texas to Sendero Petroleum LLC for roughly $6.3 million in cash. Sendero also agreed to assume all obligations relating to the assets, including plugging and abandonment costs.

The sale follows Sanchez Midstream's name change and divestment of operated Oklahoma production assets for $5.5 million in May. The company is owned by affiliates of Sanchez Energy Corp. (NYSE: SN).

In keeping with its strategy to focus on midstream activities in the western Eagle Ford in South Texas, Gerry Willinger, CEO of the Sanchez Midstream's general partner, also reported that the Raptor Gas Processing Facility successfully completed testing and start-up in June and is now fully operational.  

The Raptor facility, a 50% joint venture with Targa Resources Corp. (NYSE: TRGP), began receiving deliveries from the Carnero Gathering Pipeline in the Eagle Ford in June. It currently has natural gas processing capacity of 200 million cubic feet equivalent per day (MMcfe/d) and is slated for expansion to 260 MMcfe/d by the end of third-quarter 2017.

"With the Raptor Gas Processing Facility fully operational, Raptor SECO Pipeline Phase 1 construction is now nearing completion," Willinger said in a statement. "This wholly-owned dry gas pipeline is expected to provide takeaway capacity from the Raptor Gas Processing Facility to premium natural gas markets in South Texas beginning later this month. These assets are expected to provide a stable stream of fee-based cash flow beginning in the third quarter [of] 2017 and are key components of our growth strategy in South Texas."

Sanchez Midstream said it expects the sale to Sendero to close in third-quarter 2017, subject to normal and customary closing conditions.