Apache Completes
Acquisition of Devon's Gulf of Mexico Shelf Assets
$1.05 billion
transaction brings production of 19,000 equivalent barrels per day, drilling
upside
HOUSTON, June 10, 2010
/PRNewswire via COMTEX News Network/ -- Apache Corporation (NYSE, Nasdaq: APA) said today that it has completed its
previously announced acquisition of Devon Energy Corporation's oil and gas
assets in the shallow waters of the Gulf of Mexico Shelf for $1.05 billion. Apache
estimated net proved and probable reserves of 83 million barrels of oil
equivalent at year-end 2009.
The properties are
projected to produce 9,500 barrels of liquid hydrocarbons and 55 million
cubic feet of gas per day (net) after closing - the same balance of liquids
and natural gas in Apache's current worldwide production. About half of the
estimated proved reserves of 41 million barrels equivalent are oil and
natural gas liquids.
The acquired assets
comprise 477,000 net acres across approximately 150 blocks. Virtually all of
the production is located in fields in waters less than 500 feet deep.
Seven major field areas
hold 90 percent of the proved reserves. Apache will operate 75 percent of the
production. Based on initial evaluation, Apache has identified 79
recompletion opportunities and 26 drilling prospects across the acquired
assets.
Additional information
about this transaction is posted on Apache's Web site, www.apachecorp.com, along with
other announcements, updates, investor information and copies of all press
releases.
Apache Corporation is
an oil and gas exploration and production company with operations in the
United States, Canada, Egypt, the United Kingdom North Sea, Australia and
Argentina.
This news release
contains certain "forward-looking statements" within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995 including, without limitation, expectations, beliefs,
plans and objectives regarding production and exploration activities. Any
matters that are not historical facts are forward-looking and, accordingly, involve
estimates, assumptions, risks and uncertainties, including, without
limitation, risks, uncertainties and other factors discussed in our most
recently filed Annual Report on Form 10-K, on our Web site and in our other
public filings and press releases. There is no assurance that Apache's
expectations will be realized, and actual results may differ materially from
those expressed in the forward-looking statements. We assume no duty to
update these statements as of any future date.
Effective January 1,
2010, the United States Securities and Exchange Commission (SEC) now permits
oil and gas companies, in their filings with the SEC, to disclose not only
"proved" reserves (i.e., quantities of oil and gas that are
estimated to be recoverable with a high degree of confidence), but also
"probable" reserves (i.e., quantities of oil and gas that are as
likely as not to be recovered) as well as "possible" reserves
(i.e., additional quantities of oil and gas that might be recovered, but with
a lower probability than probable reserves). Statements of reserves are only
estimates and may not correspond to the ultimate quantities of oil and gas
recovered. Any reserve estimates provided in this presentation that are not
specifically designated as being estimates of proved reserves may include
estimated reserves not necessarily calculated in accordance with, or
contemplated by, the SEC's latest reserve reporting guidelines. Investors are
urged to consider closely the disclosure in Apache's Annual Report on Form
10-K for the fiscal year ended December 31, 2009, available from Apache at www.apachecorp.com
or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056
(Attn: Corporate Secretary). You can also obtain this report from the SEC by
calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.
APA-USG
SOURCE Apache Corporation