Apache, ExxonMobil agree to jointly explore for deep natural gas

By OGJ editors

HOUSTON, May 24 -- ExxonMobil Corp. and Apache Corp., Houston, Monday announced that Apache agreed to pay $385 million for interest in part of ExxonMobil's stake in mature producing oil and gas fields in the US and Canada.

In addition, the two companies agreed to jointly explore for deep natural gas on more than 800,000 acres of Apache properties, both onshore and off Louisiana. The agreement calls for an initial 5-year period, with extension options available.

ExxonMobil agreed to transfer part interest in 28 producing oil and gas fields in West Texas and New Mexico to Apache. The properties currently produce 10,000 boed. ExxonMobil will retain a revenue interest indexed to oil prices through 2009. The major also will retain a 50% working interest in all properties under the currently producing intervals.

In Alberta, ExxonMobil Canada Energy agreed to transfer part of its interest in 300,000 acres of undeveloped property in mature areas to Apache Canada Ltd. Apache plans to drill and operate more than 250 wells during an initial 2-year period. ExxonMobil Canada will retain a 37.5% interest lessor royalty on fee lands and 35% of its working interest on ExxonMobil leasehold as to any production resulting from the drilling.

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