Living up to a commitment to make 2000 the “year of the drillbit,” Apache Corp. said yesterday it will acquire long-livedproducing properties in the Permian Basin and South Texas for morethan $300 million in a definitive agreement with Collins & WareInc., based in Midland, TX.

The assets have proved reserves of nearly 502 Bcfe, of whichone-third is liquid hydrocarbons, and probable reserves areestimated at 151 Bcfe. Current net production is 40 MMcf/d ofnatural gas and 4,000 B/d of liquid hydrocarbons. The propertieshave nearly 214,000 net acres, and 153,000 of them are undeveloped.The assets also include nearly 1,928 square miles of 3-D seismicdata.

“This negotiated purchase complements Apache’s core areas and isexpected to add immediately to per-share earnings and cash flow,”said Roger Plank, executive vice president of the Houston company.Plank said that with this transaction, Apache has purchased or hasunder contract total reserves of 126 million boe (70% gas), whichrepresent an estimated full-year 2000 reserve replacement of 136%at an average cost of less than $4 per barrel of oil equivalent.

“Rising production and strong product prices enable the cost ofthese acquisitions, plus planned capital expenditures, to fallwithin Apache’s currently projected fee cash flow.

Lisa Stewart, Apache’s executive vice president for businessdevelopment and E&P, called the properties “excellent,” andsaid that more than 90% of the production is operated. “Theseassets are tailor made for the kind of exploitation activity atwhich our people excel,” she said.

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