Apache Buys Devon Shallow Gulf Assets for $1.05B

Apache has completed its previously announced acquisition of Devon's oil and gas assets in the shallow waters of the Gulf of Mexico Shelf for $1.05 billion. Apache estimated net proved and probable reserves of 83 million barrels of oil equivalent at year-end 2009.

The properties are projected to produce 9,500 barrels of liquid hydrocarbons and 55 million cubic feet of gas per day (net) after closing - the same balance of liquids and natural gas in Apache's current worldwide production. About half of the estimated proved reserves of 41 million barrels equivalent are oil and natural gas liquids.

The acquired assets comprise 477,000 net acres across approximately 150 blocks. Virtually all of the production is located in fields in waters less than 500 feet deep.

Seven major field areas hold 90 percent of the proved reserves. Apache will operate 75 percent of the production. Based on initial evaluation, Apache has identified 79 recompletion opportunities and 26 drilling prospects across the acquired assets.