EOG Resources to Sell Its Kitimat LNG Facility Stake and a Portion of its Horn
River Basin Acreage
HOUSTON, Dec. 24, 2012 /CNW/ - EOG Resources, Inc. (NYSE: EOG), (EOG) through
its Canadian subsidiary, EOG Resources Canada Inc. (EOG Canada), today
announced the signing of a purchase and sale agreement for its interest in the
Kitimat LNG facility to Chevron Canada Limited. The transaction, subject to
approval by Canadian regulatory authorities, is expected to close by the end
of the first quarter 2013. The agreement includes EOG Canada's 30 percent
interest in the planned natural gas liquefaction and export facility on
British Columbia's west coast and associated Pacific Trail Pipelines project,
as well as approximately 28,500 undeveloped net acres in the Horn River Basin.
"While we still believe in the viability of the Kitimat project, our decision
to exit is consistent with EOG's focus on domestic onshore crude oil
production, which is generating more immediate reinvestment opportunities,"
said Mark G. Papa, Chairman and Chief Executive Officer.
Further details with respect to the terms of the sale are not being disclosed
by the parties. RBC Capital Markets acted as financial advisor for Apache
Corporation, Encana Corporation and EOG Resources in regards to the Horn River
acreage aspect of this transaction.
EOG Resources Canada Inc. is a wholly owned subsidiary of EOG Resources, Inc.
(NYSE: EOG). EOG is one of the largest independent (non-integrated) crude oil
and natural gas companies in the United States with proved reserves in the
United States, Canada, Trinidad, the United Kingdom and China. EOG Resources,
Inc. is listed on the New York Stock Exchange and is traded under the ticker
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including regarding EOG's
expectations with respect to the closing date of the transaction described in
this press release. Although EOG believes the expectations reflected in its
forward-looking statements are reasonable and are based on reasonable
assumptions, no assurance can be given that these assumptions are accurate or
that any of these expectations will be achieved (in full or at all) or will
prove to have been correct. Moreover, EOG's forward-looking statements may be
affected by known and unknown risks, events or circumstances that may be
outside EOG's control. Important factors that could cause EOG's actual results
to differ materially from the expectations reflected in EOG's forward-looking
statements are enumerated in EOG's most recent Quarterly Report on Form 10-Q
filed with the United States Securities and Exchange Commission; see the
section entitled "Information Regarding Forward-Looking Statements" therein.
Also, see "Risk Factors" on pages 15 through 23 of EOG's Annual Report on Form
10-K for the fiscal year ended December 31, 2011 filed with the United States
Securities and Exchange Commission for a discussion of certain risks that
affect or may affect our business and operations. You should not place any
undue reliance on any of EOG's forward-looking statements, which speak only as
of the date made. EOG undertakes no obligation, other than as may be required
by applicable law, to update or revise its forward-looking statements, whether
as a result of new information, subsequent events, anticipated or
unanticipated circumstances or otherwise.
|For Further Information Contact:|Investors |
| |Maire A. Baldwin |
| |(713) 651-6364 |
| |Elizabeth M. Ivers |
| |(713) 651-7132 |
| |Kimberly A. Matthews|
| |(713) 571-4676 |
| | |
| |Media |
| |K Leonard |
| |(713) 571-3870 |
SOURCE: EOG Resources, Inc.
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-0- Dec/24/2012 14:07 GMT
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