Apache Closes on North American Exploration and Development Agreements With ExxonMobil
October 5, 2004 at 12:00 AM EDT
Apache Closes on North American Exploration and Development Agreements With ExxonMobil HOUSTON, Oct. 5 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that it has closed on a series of previously announced agreements with ExxonMobil Corporation (NYSE: XOM) affiliates designed to optimize both companies' oil and gas exploration and development programs in the United States and Canada.
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 Continental Shelf. Apache's participation includes cash payments of approximately $347 million.
In the Western Canadian Province of Alberta, Apache has 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 will drill at least 250 wells (operating the majority) over an initial two-year period with opportunity for further 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 approximately 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 approximately 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.
Apache Corporation is a large oil and gas independent with core operations in the United States, Canada, the United Kingdom North Sea, Egypt and Western Australia. For Apache, the agreements add production in the Permian Basin, which is one of the company's core areas, and provide access to a significant new acreage position in Canada as well as a world-class partner for deep gas exploration in South Louisiana and the Gulf of Mexico.
This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the successful negotiation, approval, and execution of definitive agreements, the availability of needed personnel and equipment for the future exploration and development, fluctuations in oil and gas prices, and general economic conditions.
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