The sale is part of Anadarko’s new CEO James Hackett’s plan to combat the firm’s US$5 billion debt and will leave the Houston-based firm with only one offshore asset in the GOM, the deepwater Marco Polo project.
In a statement Apache said, “The acquisition includes 78 fields on 241 offshore blocks, approximately 693,000 net acres, including 93 undeveloped blocks, and 112 platforms. Apache will operate 53 of the fields with 80% of the production and 85% of the net reserves.
“Apache will book proved reserves of approximately 61 million barrels of oil equivalent (MMboe) of which 51% is natural gas. Apache estimates the properties’ probable reserves at an additional 23 MMboe.”
“Prior to the Apache transaction, Morgan Stanley Capital Group Inc agreed to pay Anadarko US$775 million to acquire an overriding royalty interest in 24 MMboe of lower-risk reserves estimated to be produced over the next four years.
“Apache will record a US$99 million liability to reflect the future cost of producing and delivering the reserves to Morgan Stanley but will not book these reserves. Apache will book the remaining reserves at a lower cost per barrel equivalent and retains all of the potential upside from future exploration and development activities,” added the firm.
According to Apache CEO and President G. Steven Farris, “This transaction enables Apache to grow reserves and production at a reasonable cost during a time when commodity prices and acquisition costs are high. These properties will be immediately accretive to our per-share results and will add significant drilling and operational enhancement opportunities in the years ahead.”
“The acquired properties are strategically aligned with Apache’s existing Shelf acreage [and] that means we can easily and economically integrate them with our current holdings in the Gulf,” added Farris.
It is understood the deal is still subject to a Hart-Scott-Rodino review and post-closing adjustments and some of the properties are subject to preferential rights, which could be exercised by third-party owners at a later time.
