Apache Sells Canadian Oil and Gas Assets
Apache Corporation announced it has agreed to sell certain oil and gas producing properties in Canada in two separate transactions with a combined value of US$112 million.
Apache has agreed to sell its Hatton, St. Lina, Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye producing properties. These are primarily dry gas developments located in Saskatchewan and Alberta and comprise approximately 4,000 operated and 1,300 non-operated wells that averaged daily production of 38 million cubic feet of natural gas and 750 barrels of oil, condensate and natural gas liquids, net to Apache, during the second-quarter 2013.
Both transactions have an effective date of April 1, 2013, and are expected to close during the fourth quarter.
Last month, Apache announced the sale of its Nevis, North Grant Lands, and South Grant Lands assets, which are also in Alberta. Including transactions involving company properties and assets in Canada, the Gulf of Mexico and Egypt, Apache has announced divestments totaling nearly $7.2 billion.
“In Canada, Apache is focused on growing liquids production from a deep inventory of crude oil- and liquids-rich opportunities in Canada’s Western Sedimentary Basin,” said Rodney J. Eichler, president and chief operating officer. “Our extensive remaining acreage in these areas can generate attractive rates of return and provide for more predictable production growth. We also remain focused on advancing the Kitimat LNG project to monetize large unconventional resources in the Liard and Horn River basins in northern British Columbia.”
RBC Capital Markets acted as financial advisor and Osler, Hoskin & Harcourt LLP provided legal representation for Apache in these transactions.
LNG World News Staff, September 18, 2013; Image: Apache