A brand-new Denver energy company said it's buying oil and gas assets in California in a deal that could be worth as much as $742 million.

Privately held Sentinel Peak Resources of Denver said it's buying the California onshore assets from the oil and gas subsidiary of Freeport-McMoRan Inc. for $592 million. Sentinel Peak Resources said it will pay an extra $50 million per year if oil stays above $70 per barrel in 2018, 2019 and 2020.

Sentinel Peak Resources (SPR) said it was formed this year by Quantum Energy Partners and Michael Duginski, who was formerly the COO of Denver-based Berry Petroleum, which was bought by Linn Energy LLC in 2013 for $4.9 billion. Linn filed for bankruptcy protection this year.

Read more from the Denver Business Journal: http://bizj.us/1omweo.