Houston independent Apache Corp. has agreed to sell noncore southern Louisiana and certain Anadarko basin assets in two separate deals for a combined $1.4 billion. Both transactions, effective Oct. 1, are expected to close during the fourth quarter.
The southern Louisiana assets comprise working interest in 90,000 net acres, which the company says are characterized by high decline rates and short reserve lives. During the third quarter, the acreage produced 21,000 boe/d net to Apache, of which 62% was gas and natural gas liquids.
Apache will retain its 275,000 mineral acres in southern Louisiana.
The Anadarko basin assets comprise 115,000 net acres in a portion of the company’s Stiles Ranch field in Wheeler County, Tex., and in its Mocane-Laverne and Verden fields in western Oklahoma. During the third quarter, net production from the properties averaged 26,000 boe/d, of which 83% was gas and NGLs.
North American onshore focus
“We continue to focus on growing liquids production from our deep inventory of North American resource locations,” said G. Steven Farris, Apache's chairman, chief executive officer, and president. “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."
Additional asset sales made this year by the company include interest in the deepwater Gulf of Mexico (OGJ Online, June 30, 2014); properties in the Deep basin area of western Alberta and British Columbia (OGJ Online, Mar. 31, 2014); and all of its Argentina operations (OGJ Online, Feb. 12, 2014).
Apache also reported plans to exit its holdings in the Wheatstone LNG project in Western Australia and Kitimat LNG project in Bish Cove, BC, in a move consistent with the company’s “ongoing repositioning for profitable and repeatable North American onshore growth (OGJ Online, Aug. 1, 2014).”
The company forecasts 2015 North American onshore liquids growth of 12-16% when adjusted for this year’s asset sales. On a barrel of oil equivalent basis, the company projects 2015 North American onshore production growth of 8-12%. The forecast assumes a preliminary North American onshore exploration and production capital budget of $4 billion.
Apache presented a 5-year compounded annual production growth outlook for onshore North American liquids of 12-16% and 8-12% on a boe basis.