Anadarko Petroleum Corp. on Wednesday said it signed agreements to sell its “Phase 2” Canadian properties to two undisclosed Canadian buyers for an estimated US$715 million (C$853 million).

The latest sale comes nearly three months after the Houston-based producer reported it reached an agreement to divest “Phase 1” of its Canadian assets to a subsidiary of Calgary-based Advantage Energy Income Fund for US$142 million. The package included an estimated 9.9 million boe (MMboe) of proved reserves and net production of 4,500 boe/d from 35 fields in central and southern Alberta and southeastern Saskatchewan (see Daily GPI, Aug. 25). The sale closed on Sept. 30.

The “Phase 2” sale is made up of various assets in Alberta and northeastern British Columbia, representing an estimated 55 MMboe of proved reserves as of Sept. 1 of this year and average production in September of 22,200 boe/d (net after royalties), according to Anadarko. The properties include interests in 84 fields no longer considered to be core to Anadarko’s ongoing strategy.

Combined with the “Phase 1” divestiture, Anadarko said it expects to realize significant operational efficiencies by selling 76% of the fields in its Canadian portfolio, but only 25% of the reserves.

The primary “Phase 2” Canadian transaction consists of the sale of an Anadarko subsidiary, while the second transaction involves the sale of a small suite of properties, the company said.

Both transactions are subject to normal closing conditions and purchase price adjustments and are expected to close by year-end 2004, Anadarko noted. Transaction advisors for Anadarko are Deutsche Bank Securities Inc. and Waterous & Co.

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