Apache to buy West Texas fields from Anadarko

Apache Corp. has agreed to pay $1 billion for Anadarko Petroleum Corp.'s interests in 28 Permian basin oil fields in West Texas.

Jan. 18, 2007

By OGJ editors
HOUSTON, Jan. 18 -- Apache Corp. has agreed to pay $1 billion for Anadarko Petroleum Corp.'s interests in 28 Permian basin oil fields in West Texas.

The agreement allows the companies to create a joint venture to effect the transaction, which is to close in the first quarter. The effective date of the transaction is the earlier of the closing date or Mar. 31, 2007.

The Permian basin fields are expected during 2007 to produce 9,000 b/d of oil and 19 MMcfd of gas from about 3,950 wells on 143,000 net acres.

Anadarko operates nearly 90% of the properties. Oil makes up more than 70% of the production, produced primarily through water-flood recovery operations.

This deal is the latest in a slew of Anadarko asset divestments following the company's separate purchases of Kerr-McGee Corp. and Western Gas Resources Inc. last year. Anadarko as of yearend 2005 had 2.4 billion boe of proved reserves.