Apache Corp. (NYSE: APA) has agreed to sell certain oil and gas producing properties in Canada in two separate transactions with a combined value of $112 million, the company announced on Sept. 17.
Apache will sell its Hatton, St. Lina, Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye producing properties. These are primarily dry gas developments located in Saskatchewan and Alberta and comprise 4,000 operated and 1,300 non-operated wells that averaged daily production of 38 million cubic feet (MMcf) of natural gas and 750 barrels (bbl) of oil, condensate and NGLs, net to Apache, during 2Q 2013.
Both transactions have an effective date of April 1, and are expected to close during the fourth quarter.
Last month, Apache announced the sale of its Nevis, North Grant Lands, and South Grant Lands assets, which are also in Alberta. Including transactions involving company properties and assets in Canada, the Gulf of Mexico and Egypt, Apache has announced divestments totaling nearly $7.2 billion.
"In Canada, Apache is focused on growing liquids production from a deep inventory of crude oil- and liquids-rich opportunities in Canada's Western Sedimentary Basin," Rodney J. Eichler, president and chief operating officer, said in the release. "Our extensive remaining acreage in these areas can generate attractive rates of return and provide for more predictable production growth. We also remain focused on advancing the Kitimat LNG project to monetize large unconventional resources in the Liard and Horn River basins in northern British Columbia."
RBC Capital Markets was financial advisor. Osler, Hoskin & Harcourt LLP provided legal representation for Apache.
Apache Corp. is an independent energy company engaged in the exploration for, development, and production of natural gas, crude oil, and NGLs. The company is based in Houston.