Apache Corporation (NYSE, Nasdaq: APA) will provide an update to investors at its North American Update conference in New York today.
Highlights from the Update include:
G. Steven Farris, Apache's chairman, chief executive officer and president, said: "We have made great progress in strategically positioning our North American onshore portfolio for high growth and high returns. We continue to focus on growing liquids production from our deep inventory of North American resource locations. Proceeds from today's announced asset sales will be used primarily to fund our 2014 leasehold acquisition program, which has added significant acreage within our primary focus areas."
Farris continued, "We are excited about our 2015 drilling plan, which will focus on projects that generate high rates of return and competitive growth, even in today's lower oil price environment."
In southern Louisiana, Apache agreed to sell its working interest in approximately 90,000 net acres. These mature fields, which are characterized by high decline rates and short reserve lives, produced approximately 21,000 BOE per day (62 percent gas and NGLs) net to Apache during the third quarter of 2014. Apache will retain its 275,000 mineral acres in South Louisiana.
In a separate transaction in the Anadarko Basin, Apache agreed to sell approximately 115,000 net acres in a portion of its Stiles Ranch field in Wheeler County, Texas, and in its Mocane-Laverne and Verden fields in western Oklahoma. Net production from these properties averaged 26,000 BOE per day (83 percent gas and NGLs) during the third quarter of 2014.
Both transactions have an effective date of Oct. 1, 2014, and are expected to close during the fourth quarter of 2014.
RBC Richardson Barr acted as the financial advisor on the southern Louisiana transaction and Wells Fargo Securities, LLC acted as the financial advisor on the Anadarko Basin transaction.
Source: Apache Corporation
Date: Nov 20, 2014