Apache Corp. on Tuesday completed a series of agreements with ExxonMobil Corp. affiliates that are expected to optimize both companies’ oil and natural gas exploration and development programs in North America. Among other things, the agreements hand Apache control over 28 producing oil and gas fields in West Texas and New Mexico and give the independent exploration rights to thousands of undeveloped acres in Alberta.

The agreements, which were first announced in May (see NGI, May 31), provide for transfers and joint ventures/partnerships across a broad range of prospective and mature properties in the Permian Basin, New Mexico, Western Canada, onshore Louisiana and the Gulf of Mexico Outer Continental Shelf. Apache’s participation includes cash payments of approximately $347 million.

In Alberta, Apache signed a farm-in agreement covering ExxonMobil Canada Energy’s interest in more than 380,000 gross acres of undeveloped properties in mature areas. Apache, which will operate as the majority owner, will drill at least 250 wells over an initial two-year period, and it has an option to explore more of the properties after that.

In West Texas and New Mexico, the companies formed a partnership under which Apache will participate in 23 mature producing oil and gas fields with production net to Apache of approximately 9,150 boe/d. ExxonMobil retains an interest in the production and a 50% working interest in all exploration acreage in depths below the currently producing intervals.

Onshore Louisiana and on Gulf of Mexico shelf acreage, Apache and ExxonMobil will jointly explore for deep gas on approximately 800,000 gross acres of Apache properties for an initial period of five years, with provisions for extension. Apache will continue to operate the shallower prospects, while ExxonMobil will operate the deeper prospects.

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