An Apache Corp. unit has completed its acquisition of substantially all of BP plc's upstream natural gas business in western Alberta and British Columbia, the company said Tuesday. It marks the second closing of Apache's three-part acquisition of BP assets.
Apache Canada Ltd. acquired assets with estimated proved reserves of 224 MMboe and first-half 2010 net production of 46,500 boe/d. The acquisition includes 1.3 million net acres with "significant positions" in several emerging unconventional plays, including the Montney, Cadomin, Doig and coalbed methane.
The deal came to light in July following negotiations that took place in the midst of BP's Macondo well blowout catastrophe in the Gulf of Mexico (see Daily GPI, July 21). Shortly after, further asset sales by BP were announced (see Daily GPI, July 28).
The company paid $3.25 billion for the Canadian properties. The effective date of the transaction was July 1. Apache has received the required approvals from the Minister of Industry under the Investment Canada Act and from the Canadian Competition Bureau under the Competition Act and will take over operations of the properties on Nov. 1.
In August another Apache subsidiary completed its acquisition of all of BP's oil and gas operations, acreage and infrastructure in the Permian Basin. Completion of Apache's acquisition of BP assets in Egypt's Western Desert is subject to regulatory approvals. Apache is financing the acquisitions with a combination of debt and equity securities as well as cash on hand.
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