Houston independent Apache Corp. has agreed to sell its producing oil and gas assets in the Deep basin area of western Alberta and British Columbia for $374 million. The transaction is expected to close on or about Apr. 30.
Apache is selling primarily dry gas-producing properties comprising 622,600 gross acres, 328,400 net, in the Ojay, Noel, and Wapiti areas in Alberta and British Columbia.
In the Wapiti area, Apache will retain 100% 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 MMcfd of natural gas and 1,500 b/d of liquid hydrocarbons.
“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 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 added.
Apache in August 2013 agreed to sell oil and gas producing properties in the Nevis, North Grant Lands, and South Grant Lands areas of western Alberta to Ember Resources Inc. for $214 million (OGJ Online, Aug. 15, 2013). A month later, the company agreed to sell its Hatton, St. Lina, Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye producing properties (OGJ Online, Sept. 18, 2013).
Apache has also recently divested operations on the Gulf of Mexico Shelf and in Argentina, as well as sold a one-third interest in its Egypt operations (OGJ Online, July 18, 2013; Feb. 2, 2014; Aug. 30, 2013).