Argo Petroleum agreed to sell some of its assets.

The Santa Monica-based firm, which is operating under the protection of the federal Bankruptcy Code, said it plans to sell its oil and gas assets for $32 million to an undisclosed company. The proceeds would go to Continental Illinois National Bank, Argo’s principal creditor. Continental has yet to agree to the deal. Argo said the agreement calls for the purchaser to resell to Argo a 20% interest in the oil and gas properties for $6 million. Argo would repay a promissory note over seven years “on terms we could handle,” said Dan Pasquini, vice president for operations.