Apache Corp., Houston, (NYSE, Nasdaq: APA) plans to acquire London-based BP's (NYSE: BP) remaining producing properties on the outer continental shelf of the Gulf of Mexico for US$1.3 billion cash. Apache will acquire 18 producing fields, 11 of which are operational, covering 92 blocks with estimated proved reserves of 27 million barrels of liquid hydrocarbons and 185 billion cubic feet of natural gas. Apache also has identified 50 drilling locations on the properties and an additional 4 million barrels of liquids and 26 billion cubic feet of natural gas in probable and possible reserves. Some of the fields are subject to exercise of preferential rights to purchase by other interest owners. The transaction, which is subject to government approvals, is expected to close by the end of the second quarter. The acquired assets are expected to provide average daily production of 7,100 barrels of oil, 1,500 barrels of natural gas liquids and 108 million cubic feet of natural gas, and to generate US$320 million of operating cash flow until the end of the year. Production and cash flow are expected to rise in 2007 as fields damaged in the 2005 hurricane season are brought back online. Goldman, Sachs & Co. was financial advisor to Apache for the transaction.