Fieldwood Energy to buy gulf shelf assets from Apache

Fieldwood Energy LLC has acquired the Gulf of Mexico shelf business from Houston-based Apache Corp. for $3.75 billion. The properties comprise more than 500 blocks and 1.9 million net acres. The deal is based on an effective date of July 1.

Fieldwood Energy LLC has acquired the Gulf of Mexico shelf business from Houston-based Apache Corp. for $3.75 billion. The properties comprise more than 500 blocks and 1.9 million net acres. The deal is based on an effective date of July 1.

Apache said it will retain 50% of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested. As part of the transaction, Fieldwood hopes to retain Apache’s gulf shelf employees.

As of yearend 2012, total proved reserves attributable to the assets were 239 MMboe, of which more than 55% is oil and more than 75% is developed. Current production exceeds 95,000 boe/d and is more than 90% operated.

Fieldwood and Apache also agreed to jointly participate in deep exploration opportunities on the acquired assets targeting a robust inventory of high potential prospects including subsalt horizons around known producing fields.

Fieldwood is a Houston-based portfolio company of Riverstone Holdings LLC, a New York-based private equity firm.

Apache previously announced plans to divest $4 billion in assets by yearend as part of its ongoing portfolio assessment and to focus on more recently acquired properties.

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