Apache to sell Canadian oil, gas assets for $112 million

Apache Corp. has agreed to sell certain oil and natural gas producing properties in Canada in two separate transactions for a combined total of $112 million.

Apache has agreed to sell its Hatton, St. Lina, Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye producing properties. These are primarily dry gas developments in Saskatchewan and Alberta and comprise 4,000 operated and 1,300 nonoperated wells that averaged production of 38 MMcfd of gas and 750 bbl of oil, condensate, and natural gas liquids, net to Apache, during this year’s second quarter.

The St. Lina and Marten Hills properties were the subject of arbitration proceedings in 2011 when Apache disputed the prices of Canadian assets bought from BP Canada as part of a $7 billion transaction. “Apache alleges that in the future various of the sites that it acquired from BP Canada Energy pursuant to the parties’ July 2010 purchase and sale agreement will have to have work carried out to bring the sites into compliance with applicable Alberta environmental laws,” BP said at the time the proceedings were initiated (OGJ Online, March 4, 2011).

Last month Apache sold its Nevis, North Grant Lands, and South Grant Lands assets, which also are in Alberta, to Ember Resources Inc. for $214 million (OGJ Online, Aug. 15, 2013). In addition, it sold 33% of its Egypt operations to Sinopec International Petroleum Exploration & Production Corp for $3.1 billion (OGJ Online, Aug. 30, 2013).

Including transactions involving company properties and assets in Canada, the Gulf of Mexico and Egypt, Apache has announced divestments totaling nearly $7.2 billion.