Apache Corp. (NYSE: APA) is marketing thousands of East Texas leasehold acres as the Houston company accelerates the development of its Alpine High discovery in the Delaware Basin.

Since announcing the discovery in September, Alpine High has risen to the forefront of Apache’s spending plans. This year is expected to be more of the same, with Apache CEO John Christmann declaring “our top priority next year (in 2017) is funding the Alpine High,” during the company’s third-quarter earnings call.

Alpine High is already being fitted for a four- to six-rig program and midstream buildout in Apache’s preliminary 2017 budget. Mike Kelly, senior analyst with Seaport Global Securities, said in a Jan. 30 report that he expects noncore asset sales to help offset Alpine High capex.

Before the close of February, Apache plans to take bids on more than 34,000 gross (17,000 net) acres of non-producing leasehold in two separate sealed-bid offerings handled by EnergyNet.

The offer is comprised of East Texas Basin acreage in Smith and Van Zandt counties and Woodbine Shale acreage in Houston, Madison, Trinity and Walker counties. Offset operators include ConocoPhillips (NYSE: COP), EOG Resources Inc. (NYSE: EOG) and XTO Energy Inc.

Kelly said Apache may be willing to part with additional noncore Delaware Basin properties.

Highlights:

Smith Van Zandt Counties Texas Map

East Texas Basin Offering

  • 23,300.539 gross (10,722.978 net) leasehold acres in two counties;
    • 8,374.602 net acres located in Smith;
    • 2,348.376 net acres located in Van Zandt;
  • 16.667% to 25% royalty interest;
  • Offset activity includes 16 active area permits (six horizontal);
    • Possible targets consist of the Paluxy, Goodland Lime, Glen Rose and Rodessa formations; and
  • Offset operators include Comstock Oil & Gas LP, Union Oil Co. of California, Valence Operating Co. and XTO Energy’s Draw Unit.

Houston Madison Trinity Walker Counties Texas Map

Woodbine Shale Offering

  • 11,082.082 gross (6,736.343 net) leasehold acres in four counties;
    • 1,703.611 net acres located in Houston;
    • 3,045.915 net acres located in Madison;
    • 1,981.823 net acres location in Trinity;
    • 4.993 net acres located in Walker;
  • 16.667% to 25% royalty interest;
  • Offset activity includes 20 active area permits (eight horizontal);
    • Possible target formations include the Woodbine, Buda and Lewisville; and
  • Offset operators include ConocoPhillips Co., EOG Resources, Hilcorp Energy Co. and XTO Energy.

All bids are due by 4 p.m. CT Feb. 23. For information visit energynet.com or contact EnergyNet’s Cody Felton at 281-221-3042.

Emily Patsy can be reached at epatsy@hartenergy.com.

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