Freeport-McMoRan's Subsidiary Completes Acquisition Of Deepwater GOM Interests

(RTTNews) - Freeport-McMoRan Copper & Gold Inc. (FCX) announced that its oil and gas subsidiary, Freeport-McMoRan Oil & Gas or FM O&G has completed the previously announced acquisition of certain of Apache Corporation's (APA) interests in the Deepwater Gulf of Mexico or GOM.

Following the exercise of preferential purchase rights by other working interest owners in the Lucius project, FM O&G acquired for $919 million, 51.2% of Apache's 11.7% working interest in the Lucius oil development project, 100% of Apache's 12.5% working interest in the Heidelberg oil development project and several exploration leases.

Following closing and the interim redetermination of equity ownership by the co-owners in the Lucius field, FM O&G owns about 25.1% working interest in Lucius.

The company said the Deepwater GOM acquisition was funded with proceeds from the previously reported sale of FM O&G's Eagle Ford Shale assets, which closed on June 20, 2014.

The estimated combined after-tax net proceeds from these transactions approximate $1.8 billion and on June 23, 2014, FCX announced that it will redeem in July 2014 approximately $1.7 billion aggregate face amount of senior notes with an average annual interest rate of approximately 6.6%.