HOUSTON, Jan. 18 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE,
Nasdaq: APA) today announced that it is acquiring controlling interest in
28 oil and gas fields in the Permian Basin of West Texas from Anadarko
Petroleum Corporation (NYSE: APC) for $1 billion.
Apache will book net reserves of 70 million barrels of oil equivalent
(57 million barrels of oil and 78 billion cubic feet of natural gas). In
2007, the fields are forecasted to produce approximately 9,000 barrels of
oil and 19 million cubic feet (MMcf) of gas per day net to Apache.
The transaction will be effective the earlier of closing or March 31,
and is subject to standard regulatory and other requirements. Apache
intends to fund the acquisition with debt. Apache and Anadarko are entering
into a joint-venture arrangement to effect the transaction.
"Anadarko's Permian Basin divestiture is an excellent opportunity for
Apache to operate high-working-interest fields that have a long reserve
life and are a close fit with Apache's existing Permian production," said
G. Steven Farris, Apache's president and chief executive officer. "The
transaction is additive to per-share results, but -- as with any
transaction -- the ultimate benefit will best be measured after we have
operated and added value to these properties."
The transaction's value is concentrated in eight operated fields
comprising 81 percent of the proved reserves and 72 percent of the expected
2007 net production.
Apache's current Permian Basin operations have net daily production of
29,000 barrels of oil and 79 MMcf of gas.
"Acquiring control of these assets in the Permian is another step in
evolving Apache's portfolio to facilitate continued growth," Farris said.
"We have good geographic balance, designed for consistent growth, with
no region contributing more than 25 percent of reserves or production," he
said. "With our strong balance sheet and diverse portfolio, Apache is in an
excellent position to continue to deliver competitive growth and returns in
a volatile environment."
Upon completion of the transaction, Apache's debt will remain below 30
percent of total capitalization.
Apache Corporation discovers and produces oil and gas in the United
States, Canada, the United Kingdom sector of the North Sea, Egypt,
Australia and Argentina.
EDITOR'S NOTE: Apache will webcast a conference call to discuss this
announcement at 10:30 a.m. Central Time, Thursday, Jan. 18, from Apache's
Web site, http://www.apachecorp.com. The conference call will be available
for delayed playback by telephone for one week beginning at approximately 2
p.m. on Jan. 18. To access the telephone playback, dial (719) 457-0820 and
provide Apache's confirmation code, 7467004. The webcast replay and podcast
will be archived on Apache's Web site. To have the podcast delivered to
you, sign up for Financial RSS Feeds at
http://investor.apachecorp.com/rss.cfm. To be reminded of the live webcast,
sign up for E-mail Alerts at http://investor.apachecorp.com/alerts.cfm.
This news release contains certain "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995 including,
without limitation, expectations, beliefs, plans and objectives regarding
Apache's reserves, reserve life, production, exploration potential, future
oil and gas prices, capital expenditures, and the timetable for closing the
announced acquisition. Any matters that are not historical facts are
forward-looking and, accordingly, involve estimates, assumptions and
uncertainties. There is no assurance that Apache's expectations will be
realized, and actual results may differ materially from those expressed in
the forward-looking statements.
APA-US
SOURCE Apache Corporation
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Related links:
http://www.apachecorp.com
CONTACT:
Media: Tony Lentini, +1-713-296-6227, or Bill
Mintz, +1-713-296-7276, or Investor: Robert Dye, +1-713-296-6662,
or David Higgins, +1-713-296-6690, all of Apache Corporation
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