The package is made up of various assets in Central and Southern Alberta and Southeast Saskatchewan representing an estimated 9.9 million barrels of oil equivalent (BOE) of proved reserves as of year-end 2003 and current net production of approximately 4,500 BOE per day. Both reserves and production are net after royalties.
The assets include 35 fields, totaling approximately 130,000 net acres. Oil and natural gas production from the package is 60 percent operated by Anadarko.
"The completion of this first phase of our divestiture program in Canada is yet another step forward in the execution of our refocused corporate strategy," said Jim Hackett, Anadarko president and CEO. "The valuations represented by this agreement and last week's Gulf of Mexico Shelf announcement provide further confidence in our estimate of at least $2.5 billion in after-tax proceeds from the corporate asset realignment."
"Our Phase 1 asset package generated a lot of interest in the market," adds Mike Bridges, president, Anadarko Canada Corporation. "We anticipate at least as much interest in our Phase 2 package, for which the data room opens this week. As we achieve success in these sales, we can then deploy our human and capital resources to other areas where we can achieve sustainable growth and attractive returns."
The Phase 1 transaction is subject to normal closing conditions and purchase price adjustments and is expected to close by Sept. 30, 2004, with an effective date of July 1, 2004. Kobayashi Partners Limited served as the transaction advisor to Anadarko.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and gas resources vital to the world's health and welfare. As of year-end 2003, the company had 2.5 million barrels of oil equivalent reserves, making it one of the world's largest independent exploration and production companies. Anadarko's operational focus extends from the deepwater Gulf of Mexico, up through Texas, Louisiana, the Mid-Continent, western U.S. and Canadian Rockies and onto the North Slope of Alaska. Anadarko also has significant production in Algeria, Venezuela and Qatar.
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