Apache Agrees To Sell Alberta Oil And Gas Assets To Ember Resources For US$214
HOUSTON, Aug. 15, 2013
HOUSTON, Aug. 15, 2013 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA)
announced today it has agreed to sell oil and gas producing properties in the
Nevis, North Grant Lands and South Grant Lands areas of western Alberta,
Canada, to Ember Resources Inc., a private Canadian company, for US$214
million (CAN$220 million).
"Going forward, Apache is focused on growing our liquids production from a
deep inventory of crude oil- and liquids-rich opportunities that generate
attractive rates of return on our extensive remaining acreage in Canada's
Western Sedimentary Basin," said Rodney J. Eichler, president and chief
operating officer. "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.
"This transaction is one element of a comprehensive review of Apache's
portfolio to determine which assets make the most sense for Apache to own
given our growth and return objectives and which assets are better owned by
others," Eichler said. "The Nevis, North Grant Lands and South Grant Lands
assets fit in the latter category."
Apache's Nevis, North Grant Lands and South Grant Lands assets
The assets comprise 621,000 gross acres (530,000 net acres) and more than
2,700 wells that had average net production of 67 million cubic feet of gas
and 237 barrels of liquid hydrocarbons per day from late Cretaceous sands and
coal seams during the second quarter of 2013. Apache will retain 100 percent
working interest in horizons below the Cretaceous, such as potential Duvernay
and Nisku, in Nevis and North Grant Lands.
The effective date of the transaction is April 1, 2013, and it is expected to
be completed during the third quarter, subject to customary regulatory
approvals and other closing conditions.
"I commend the employees who have worked these assets for many years of safe
and environmentally responsible operations," Eichler said.
Apache previously announced plans to divest $4 billion in assets by year-end
2013. The company intends to use proceeds from the asset divestitures to
reduce debt and enhance financial flexibility and to repurchase Apache common
shares under a 30-million-share repurchase program authorized by the Board of
Directors earlier this year.
In July, Apache announced an agreement to sell its Gulf of Mexico Shelf
operations and properties to Fieldwood Energy LLC (Fieldwood), an affiliate of
Riverstone Holdings, for cash proceeds of $3.75 billion. In addition,
Fieldwood will assume all asset retirement obligations for these properties,
which, as of June 30, 2013, Apache estimated at a discounted value of
approximately $1.5 billion.
Apache Corporation is an oil and gas exploration and production company with
operations in the United States, Canada, Egypt, the United Kingdom, Australia
and Argentina. Apache posts announcements, operational updates, investor
information and copies of all press releases on its website,
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements can be identified by words
such as "anticipates," "intends," "plans," "seeks," "believes," "estimates,"
"expects" and similar references to future periods. These statements include,
but are not limited to, statements about future plans, expectations, and
objectives for Apache's operations, including statements about our drilling
plans and production expectations, asset sales and monetizations and share
repurchases. The transaction with Ember Resources is subject to customary
closing conditions and may not be completed for the amount expected, in the
anticipated time frame, or at all. While forward-looking statements are based
on assumptions and analyses made by us that we believe to be reasonable under
the circumstances, whether actual results and developments will meet our
expectations and predictions depend on a number of risks and uncertainties
which could cause our actual results, performance, and financial condition to
differ materially from our expectations. See "Risk Factors" in our 2012 Form
10-K filed with the Securities and Exchange Commission for a discussion of
risk factors that affect our business. Any forward-looking statement made by
us in this news release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of them. We
undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future development, or otherwise,
except as may be required by law.
SOURCE Apache Corporation
Contact: Media: (713) 296-7276, Bill Mintz; (713) 296-6100, Patrick Cassidy;
(713) 296-6662, Bob Dye; Investor: (281) 302-2286, Brady Parish, Castlen
Kennedy, Christopher Cortez, Alicia Reis
Press spacebar to pause and continue. Press esc to stop.