Apache Offloads Canadian Assets to Ember Resources
Apache Corporation will divest oil and gas producing properties in the Nevis, North Grant Lands and South Grand Lands areas of western Alberta, Canada to Ember Resources Inc. for $214 million.
“Going forward, Apache is focused on growing our liquids production from a deep inventory of crude oil- and liquids-rich opportunities that generate attractive rates of return on our extensive remaining acreage in Canada's Western Sedimentary Basin," said Rodney J. Eichler, president and chief operating officer, in a press release. "We also remain focused on advancing the Kitimat LNG project to monetize large unconventional resources in the Liard and Horn River basins in northern British Columbia.”
The producing properties consist of 2,700 wells that had average net production of 67 million cubic feet of gas and 237 barrels of liquid hydrocarbons per day from late Cretaceous sands and coal seams during the second quarter of 2013, Apache said. The assets span 621,000 gross acres.
As part of the deal, Apache will retain 100 percent working interest in horizons below the Cretaceous.
Apache has operated in Canada since 1995 and holds around 7 million gross acres across the provinces of British Columbia, Alberta and Saskatchewan. Last year the company drilled or participated in drilling 169 wells in Canada.
The company is divesting $4 billion worth of assets and intends to use the proceeds from the asset divestitures to reduce debt and enhance financial flexibility, the company said.
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