The package is made up of various assets in Alberta and Northeast British Columbia representing an estimated 55 million barrels of oil equivalent (BOE) of proved reserves as of the effective date of the sale, Sept. 1, 2004 (or an estimated 61 million BOE of proved reserves as of year-end 2003). The average production in September for the properties was 22,200 BOE per day. Both reserves and production are net after royalties.
The properties to be sold include interests in 84 fields no longer considered by Anadarko to be core to the company's ongoing strategy. Combined with the earlier Phase 1 divestiture, Anadarko expects to realize significant operational efficiencies by selling 76 percent of the fields in its Canadian portfolio, but only 25 percent of the reserves.
"This is another major step in executing the corporate strategy Anadarko outlined in June - we're ahead of schedule on the sale process and exceeding our value estimates," said Jim Hackett, Anadarko President and CEO. "Going forward, our refocused portfolio should deliver better returns on capital and higher sustained growth rates," Hackett said.
The primary Canada Phase 2 transaction consists of the sale of an Anadarko subsidiary, permitting Anadarko to preserve valuable tax pools that will result in substantial future tax savings. The second transaction is a sale of a small suite of assets. Both transactions are subject to normal closing conditions and purchase price adjustments and are expected to close by year-end 2004. Transaction advisors for Anadarko for this sale are Deutsche Bank Securities Inc. and Waterous & Co.
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 billion barrels of oil equivalent of proved 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, and production or exploration positions in several other countries.
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