Apache to sell Louisiana, Anadarko basin assets for $1.4 billion

Apache to sell Louisiana, Anadarko basin assets for $1.4 billion

ROGER JORDAN, Associate Editor

HOUSTON -- Apache Corp. is to sell over 200,000 net acres in southern Louisiana and the Anadarko basin in two separate transactions, the company has announced.

According to G. Steven Farris, Apache’s chairman, president and CEO, proceeds from the $1.4 billion sale of the non-core assets will, primarily, be used to fund leasehold acquisitions that the company made this year.

In southern Louisiana, the Houston-based company agreed to sell its working interest in approximately 90,000 net acres. These mature fields, which are characterized by high decline rates and short reserve lives, produced approximately 21,000 boed -- 62% gas and NGLs -- net to Apache during third-quarter 2014. Apache will retain its 275,000 mineral acres in South Louisiana.

In the Anadarko basin, Apache has agreed to sell approximately 115,000 net acres in a portion of its Stiles Ranch field in Wheeler County, Texas, and in its Mocane-Laverne and Verden fields in western Oklahoma. Net production from these properties averaged 26,000 boed -- 83% gas and NGLs -- during third-quarter 2014.

Apache is continuing to focus “on growing liquids production,” Farris said in a statement on the company’s onshore operations in North America.

The company is forecasting 2015 North American onshore liquids growth of 12-16%, when adjusted for 2014 asset sales. On a barrel of oil equivalent basis, the company projects 2015 North American onshore production growth of 8-12%.

"We are excited about our 2015 drilling plan, which will focus on projects that generate high rates of return and competitive growth, even in today's lower oil price environment," Farris added.

Both transactions have an effective date of Oct. 1 and are expected to close this quarter, the company said.