By OGJ editors
HOUSTON, Sept. 14 -- Canadian Natural Resources Ltd. (CNR) plans to buy Anadarko Canada Corp. (ACC) for $4.24 billion. Anadarko is keeping its interests in the Mackenzie Delta and other Canadian arctic frontier properties.
ACC's land and production base are in Western Canada. Current production, before royalties, from the working interests being acquired by CNR, is 358 MMcfd of gas and 9,300 b/d crude oil and NGLs.
The assets include 1.5 million net undeveloped acres and key strategic facilities in the high-growth areas of northeastern British Columbia and northwestern Alberta. At yearend 2005, ACC reported proved reserves of 262 million boe, 75% of which was proved developed. The transaction, subject to normal closing conditions, is expected to close by Oct. 31.
Anadarko put its Canadian subsidiary up for sale to help raise $15 billion to reduce debt from its $21 billion purchases of Kerr-McGee Corp., Oklahoma City, and Western Gas Resources Inc., Denver (OGJ, July 10, 2006, p. 27).
CNR President and Chief Operating Officer Steve Laut said the ACC acquisition strengthens the company's asset and production base in key operating areas, specifically gas production.
The ACC assets contain more than 1,500 identified drilling locations. Existing infrastructure will allow low-cost development of ACC lands and adjacent CNR property, Laut said.
