Apache Corp., Houston, (NYSE, Nasdaq: APA) plans to acquire a controlling interest in assets in the Permian Basin of West
Texas from Anadarko Petroleum Corp., The Woodlands, Texas, (NYSE: APC) for $1 billion. The assets include 3,950 wells in 28 fields on 143,000 net acres. Eight of the fields provide 81% of the proved reserves and 72% of the expected 2007 net production. Net production in 2007 will be approximately 9,000 barrels of oil and 19 million cubic feet of gas for a total of 12,000 barrels of oil equivalent per day. Net proved reserves are 57 million barrels of oil and 78 billion cubic feet for a total of 70 million barrels equivalent. Apache’s current Permian Basin operations have net production of 29,000 barrels of oil and 79 million cubic feet of gas per day. Apache intends to fund the acquisition with debt. Apache president and chief executive
G. Steven Farris says, “Anadarko’s Permian Basin divestiture is an excellent opportunity for Apache to operate highworking-
interest fields that have a long reserve life and are a close fit with Apache’s existing Permian production.” Anadarko chairman, president and CEO Jim Hackett says, “This agreement is another important step in refocusing the portfolio following our acquisitions of Kerr-McGee and Western Gas Resources in August.” Hackett adds that Anadarko will use the proceeds to further reduce leverage associated with the acquisitions. Lehman Brothers is financial advisor for Anadarko and Tristone Capital Inc. marketed the assets. The deal is expected to close by March 31, and Apache and Anadarko are entering a joint-venture arrangement to effect the transaction.