HOUSTON, March 31, 2014 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) and its subsidiaries today
announced an agreement to sell producing oil and gas assets in the
Deep Basin area of western Alberta
and British Columbia, Canada, for
$374 million.
Incremental to Apache's earlier $2
billion share re-purchase announcement, the company plans to
use the proceeds of this transaction to buy back Apache common
shares under the 30-million-share repurchase program that was
authorized by Apache's Board of Directors in 2013.
Apache is selling primarily dry gas-producing properties
comprising 622,600 gross acres (328,400 net acres) in the Ojay,
Noel and Wapiti areas in Alberta
and British Columbia. In the
Wapiti area, Apache will retain 100 percent of its working interest
in horizons below the Cretaceous, retaining rights to the
liquids-rich Montney and other
deeper horizons. During 2013, production from the fields to be sold
averaged 101 million cubic feet of natural gas and 1,500 barrels of
liquid hydrocarbons per day.
The effective date of the transaction is Jan. 1, 2014, and it is expected to close on or
about April 30. The transaction is
subject to customary post-closing adjustments.
"This transaction is part of Apache's portfolio rebalancing,
which was undertaken last year to enable Apache to focus on growing
liquids production from a deep inventory of crude oil- and
liquids-rich opportunities in North
America," said G. Steven
Farris, Apache's chairman, chief executive officer and
president.
"The sale of these natural gas assets – and other Canadian
gas-producing properties sold last year – will permit Apache's
Canada Region to concentrate on liquids-rich opportunities that can
provide more attractive rates of return and more predictable
production growth," Farris said.
Since the rebalancing was announced in 2013, Apache also
divested operations on the Gulf of Mexico Shelf and in Argentina and sold a one-third interest in its
Egypt operations.
About Apache
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, www.apachecorp.com.
Forward-looking statements
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. This transaction 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.
Website: www.apachecorp.com
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SOURCE Apache Corporation