Apache To Sell Non-core Assets In Louisiana, Anadarko Basin For $1.4 Bln

(RTTNews) - Oil and natural gas producer Apache Corp. (APA) agreed Thursday to sell non-core southern Louisiana and certain Anadarko Basin oil and gas assets for about $1.4 billion in two separate deals. Both the deals have an effective date of October 1, 2014, and are expected to close during the fourth quarter of 2014.

The company noted that proceeds from the two asset sales will be used primarily to fund its 2014 leasehold acquisition program, which has added significant acreage within its primary focus areas.

The company also provided an update on its North American Onshore portfolio to investors at its North American Update conference in New York.

"We have made great progress in strategically positioning our North American onshore portfolio for high growth and high returns. We continue to focus on growing liquids production from our deep inventory of North American resource locations," Chairman, President and CEO Steven Farris said in a statement.

In the first deal, Apache agreed to sell its working interest in about 90,000 net acres in southern Louisiana, which are mature fields that are characterized by high decline rates and short reserve lives. The fields produced about 21,000 BOE per day (62 percent gas and NGLs) net to Apache during the third quarter of 2014. Apache will retain its 275,000 mineral acres in South Louisiana.

In a separate deal, Apache agreed to sell about 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, both in the Anadarko Basin. Net production from these fields averaged 26,000 BOE per day (83 percent gas and NGLs) during the third quarter of 2014.

Provide an update on its North American Onshore portfolio, Apache forecasts 2015 North American onshore liquids growth of 12 to 16 percent when adjusted for 2014 asset sales.

The company also projects 2015 North American onshore production growth of 8 to 12 percent on a barrel of oil equivalent (BOE) basis. The forecast assumes a preliminary exploration and production capital budget of about $4 billion.

The company initiated a five-year compounded annual production growth outlook for onshore North American liquids of 12 to 16 percent and 8 to 12 percent on a BOE basis.

During 2014, Apache said it added more than 300,000 acres of leasehold in key growth plays. The company also substantially increased its drilling inventory in the Eagle Ford and Canyon Lime plays of Texas to more than 3,000 and 800 locations, respectively.

"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.

APA closed Wednesday's regular trading session at $72.05, down $0.35 on a volume of 4.65 million shares.