Anadarko Divests Oil Assets in Northern Rockies
Anadarko Petroleum Corporation announced it has agreed to sell its interests in the Elk Basin and Gooseberry area, primarily located in Park County, Wyo., to Encore Acquisition Company for $400 million. The sale is effective Jan. 1, 2007.
"The sale of these oil fields furthers our efforts to concentrate our geographic footprint and high grade our assets," Anadarko Chairman, President and CEO Jim Hackett said. "We have significant positions in some of the most prolific basins in the Rocky Mountains. We have an extensive inventory of low-risk, repeatable projects, economies of scale and competitive advantages in the Greater Natural Buttes area in Utah, Powder River Basin in Wyoming and Wattenberg field in Colorado. Our divestiture program will enable us to concentrate on these areas where we are confident we can deliver strong, predictable growth for years to come."
At the effective date, production was approximately 4,350 barrels of oil equivalent per day (net) from 614 wells within two fields in the Elk Basin and Gooseberry area. Anadarko holds approximately 17,550 net acres and operates all of these properties. Oil accounted for approximately 80 percent of 2006 production. The sale also includes the Elk Basin Gas Plant and the Clear Fork Pipeline Company, an oil and natural gas gathering system. The Elk Basin Gas Plant has the capacity to process approximately 12 million cubic feet of natural gas per day.
This agreement is expected to close by the end of the first quarter of 2007, subject to customary closing conditions and adjustments.
Tristone Capital marketed the assets, while Lehman Brothers served as Anadarko's financial advisor.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2005, the company had 2.4 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. In August 2006, Anadarko acquired Kerr-McGee Corporation and Western Gas Resources, Inc. in separate transactions.
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