Apache to sell Lucius and Heidelberg Gulf of Mexico Developments for $1.4
HOUSTON, May 8, 2014
HOUSTON, May 8, 2014 /PRNewswire/ --Apache Corporation (NYSE, Nasdaq: APA)
today announced that its Gulf of Mexico subsidiary will sell non-operated
interests in the Lucius and Heidelberg development projects and 11 primary
term deepwater exploration blocks to a subsidiary of Freeport-McMoRan Copper &
Gold Inc. (NYSE: FCX) for $1.4 billion. The effective date of the transaction
is May 1, 2014. The sale is subject to customary closing conditions and is
expected to close by June 30, 2014.
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"We have combined our deepwater and shelf technical teams to focus on subsalt
and other deeper exploration opportunities in water depths less than 1,000
feet, which have been relatively untested by industry," said Thomas E.
Voytovich, executive vice president and chief operating officer for offshore
and international operations. "Discoveries on the shelf have quicker cycle
times, require less capital, and provide more options to bring oil and gas to
market. Apache has working interests in approximately 650 blocks in the Gulf
of Mexico. In addition to the exploration and development of properties in
shallower water, Apache continues to pursue joint venture and/or monetization
opportunities for its deepwater prospects."
The Lucius unit comprises Keathley Canyon blocks 874, 875, 918 and 919, and
the company's working interest is 11.7 percent. The Heidelberg unit includes
Green Canyon blocks 859, 903, 904 and 948 and the company holds a 12.5 percent
working interest. Apache's working interest in the 11 primary term blocks
ranges from 16.67 to 60 percent.
During the fourth-quarter 2013, Apache's Gulf of Mexico Deepwater Region
contributed 9,167 barrels of oil equivalent per day to the company's total
production. None of the company's producing operations are involved in the
sale announced today.
Apache Corporation is an oil and gas exploration and production company with
operations in the United States, Canada, Egypt, the United Kingdom, and
Australia. Apache posts announcements, operational updates, investor
information and copies of all press releases on its website,
www.apachecorp.com, and on its Media and Investor Center mobile application,
which is available for free download from the Apple App Store and the Google
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 Freeport-McMoRan 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 2013 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.
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SOURCE Apache Corporation
Contact: Media, (713) 296-6100, Patrick Cassidy, or (713) 296-7276, Bill
Mintz, or (713) 296-6662, Bob Dye, or Investors, (281) 302-2286, Castlen
Kennedy, Christopher Cortez or Alicia Reis
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