Apache, ExxonMobil close $347M U.S., Canadian property deals

Ray Tyson

Big independent Apache has closed an array of previously announced U.S. and Canadian property deals with ExxonMobil, Apache said Oct. 5, adding that its participation includes an outlay of about $347 million in cash payments to the major.

The agreements provide for transfers and joint ventures/partnerships across a broad range of prospective and mature properties in the Permian basin of West Texas and New Mexico, Western Canada, onshore Louisiana and the Gulf of Mexico’s outer continental shelf.

In Alberta, Apache said it 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 said it would drill at least 250 wells over an initial two-year period with an opportunity for additional drilling.

In West Texas and New Mexico, the companies have formed a partnership under which Apache will participate in 23 mature producing oil and gas fields with production net to Apache of about 9,150 barrels of oil equivalent per day. ExxonMobil retains an interest in the production and a 50 percent 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 about 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.