Apache Corp. on Thursday completed its $1.05 billion acquisition of Devon Energy Corp.’s oil and gas assets in the shallow waters of the Gulf of Mexico shelf . The deal netted Apache proved and probable reserves of 83 million boe at year-end 2009.

The properties are projected to produce 9,500 b/d of liquid hydrocarbons and 55 MMcf/d (net) after closing — the same balance of liquids and natural gas in Apache’s current worldwide production. About half of the estimated proved reserves of 41 million boe are oil and natural gas liquids. The acquired assets comprise 477,000 net acres across approximately 150 blocks located offshore Texas, Louisiana and Alabama. Virtually all of the production is located in fields in waters less than 500 feet deep.

Seven major field areas hold 90% of the proved reserves. Apache said it will operate 75% of the production. Based on initial evaluation, Apache has identified 79 recompletion opportunities and 26 drilling prospects across the acquired assets.

The agreement — first announced in early April (see Daily GPI, April 13) — had an effective date of Jan. 1.

Devon said its production from the shelf during 2009 was approximately 62 MMcf/d of natural gas and 9,000 b/d of liquids.

“This transaction, coupled with the recent close of the sale of our deepwater assets, essentially completes Devon’s exit from the Gulf of Mexico,” said CEO John Richels.

In November 2009 Devon announced plans to divest its Gulf of Mexico and international assets to allow the company to focus on its North American unconventional onshore assets (see Daily GPI, Nov. 17, 2009). In March all of its deepwater Gulf, Brazil and Azerbaijan assets were sold to BP plc for $7 billion (see Daily GPI, March 12). The divestiture proceeds are being allocated between the acceleration of development of Devon’s North American onshore properties, debt reduction and share repurchases. Upon completion of the repositioning, Devon said it will emerge with even more liquidity and with one of the strongest balance sheets in its peer group.

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