Apache to sell Lucius and Heidelberg Gulf of Mexico Developments for $1.4 billion
HOUSTON, May 8, 2014 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that its Gulf of Mexico subsidiary will sell non-operated interests in the Lucius and Heidelberg development projects and 11 primary term deepwater exploration blocks to a subsidiary of Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) for $1.4 billion. The effective date of the transaction is May 1, 2014. The sale is subject to customary closing conditions and is expected to close by June 30, 2014.
"We have combined our deepwater and shelf technical teams to focus on subsalt and other deeper exploration opportunities in water depths less than 1,000 feet, which have been relatively untested by industry," said Thomas E. Voytovich, executive vice president and chief operating officer for offshore and international operations. "Discoveries on the shelf have quicker cycle times, require less capital, and provide more options to bring oil and gas to market. Apache has working interests in approximately 650 blocks in the Gulf of Mexico. In addition to the exploration and development of properties in shallower water, Apache continues to pursue joint venture and/or monetization opportunities for its deepwater prospects."
The Lucius unit comprises Keathley Canyon blocks 874, 875, 918 and 919, and the company's working interest is 11.7 percent. The Heidelberg unit includes Green Canyon blocks 859, 903, 904 and 948 and the company holds a 12.5 percent working interest. Apache's working interest in the 11 primary term blocks ranges from 16.67 to 60 percent.
During the fourth-quarter 2013, Apache's Gulf of Mexico Deepwater Region contributed 9,167 barrels of oil equivalent per day to the company's total production. None of the company's producing operations are involved in the sale announced today.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom, and Australia. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google Play Store.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations, and objectives for Apache's operations, including statements about our drilling plans and production expectations, asset sales and monetizations and share repurchases. The transaction with Freeport-McMoRan is subject to customary closing conditions and may not be completed for the amount expected, in the anticipated time frame, or at all. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2013 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.
SOURCE Apache Corporation