Apache Divests $3.75B Worth of Assets in Gulf Of Mexico

Fieldwood Energy LLC, an affiliate of Riverstone Holdings, has acquired assets in the Gulf of Mexico from Apache Corporation for $3.75 billion. Fieldwood will also assume asset retirement obligations for these properties which are estimated to have a discounted value of about $1.5 billion, stated Apache in a press release.

Apache will continue to hold a 50 percent ownership interest in each block and "in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested," the company said.

The assets include more than 500 blocks with 1.9 million net acres with estimated proved reserves in the amount of 133 million barrels of oil and natural gas liquids and 636 billion cubic feet of natural gas, according to 2012 year-end estimates.

"Apache has had a great run on the Gulf of Mexico Shelf over the last 30 years, and the Shelf region and staff have played a vital role in making Apache the company it is today. As our company has evolved, however, so have our investment priorities," G. Steven Farris, chairman and chief executive officer said in the release.

"Since 2010 we have increased our focus in North America on capturing and developing a deep inventory of onshore assets, where we have been generating exceptional production growth at attractive rates of return. We remain excited about the potential associated with the emerging plays under existing salt domes, which is why we retained 50 percent of the deep rights on 406 blocks held by production and 50 percent of all rights in 146 primary term blocks," he added.

Fieldwood hopes to retain most of Apache's GOM employees.

"Apache is clearly the preeminent operator on the Gulf of Mexico Shelf, and Fieldwood is very enthusiastic about the opportunity to continue this legacy going forward," said Matt McCarroll, president and Chief Executive Officer of Fieldwood. "We are especially grateful for the continued support and our strong relationship with our partners at Riverstone.”

Fieldwood is led by CEO Matt McCarroll and other former senior executives of Dynamic Offshore Resources.


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