Billions for BP assets

News

Apache Corporation has finalised an agreement to acquire BP's remaining producing properties on the Outer Continental Shelf of the Gulf of Mexico for $1.3 billion.

has finalised an agreement to acquire

remaining producing properties on the Outer Continental Shelf of the

.

Apache will pay $1.3 billion in cash to acquire 18 producing fields (11 of which are operated) covering 92 blocks with estimated proved reserves of 27 million barrels of liquid hydrocarbons and 185 billion cubic feet (Bcf) of natural gas.

Apache has also identified 50 drilling locations on the properties and an additional four million barrels of liquids and 26 Bcf of natural gas in probable and possible reserves.

The acquired assets are expected to provide average daily production of 7,100 barrels of oil, 1,500 barrels of natural gas liquids and 108 million cubic feet (MMcf) of natural gas, and to generate $320 million of operating cash flow. Production and cash flow are expected to rise in 2007 as fields damaged in the 2005 hurricane season are brought back on line.

The transaction, which is subject to government approvals, is expected to close by the end of the second quarter.

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