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8-K - FORM 8-K - APACHE CORP | h84854e8vk.htm |
[Apache Logo] | Exhibit 99.1 |
CONTACTS: |
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(Media):
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Bill Mintz | (713) 296-7276 | ||
Patrick Cassidy | (713) 296-6100 | |||
(Investor):
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Alfonso Leon | (713) 296-6692 | ||
(Website):
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www.apachecorp.com |
APACHE TO ACQUIRE EXXONMOBILS BERYL FIELD,
OTHER UK NORTH SEA ASSETS FOR $1.75 BILLION
OTHER UK NORTH SEA ASSETS FOR $1.75 BILLION
Houston, Sept. 21, 2011 Apache Corporation (NYSE, Nasdaq: APA) said today that its
subsidiary Apache North Sea Limited has agreed to acquire Exxon Mobil Corporations Mobil North Sea
LLC assets including the Beryl field and related properties for $1.75 billion.
The fields have current net production of approximately 19,000 barrels of oil and natural gas
liquids and 58 million cubic feet (MMcf) of natural gas per day. At year-end 2010, estimated
proved reserves totaled 68 million barrels of oil equivalent.
The transaction, with a planned close at year-end 2011, is expected to increase Apaches North
Sea production by 54 percent and proved reserves by 44 percent.
The assets to be acquired include:
| Operated interests in the Beryl, Nevis, Ness, Nevis South, Skene and Buckland fields; | ||
| Operated interest in the Beryl/Brae gas pipeline and the SAGE gas plant; | ||
| Non-operated interests in the Maclure, Scott and Telford fields; and | ||
| Benbecula (West of Shetlands) exploration acreage. |
These major legacy assets will expand Apaches presence in the North Sea. They bring us
significant remaining life, high production efficiency and quality reservoirs the best North Sea
assets weve evaluated since acquiring the Forties Field in 2003, said G. Steven Farris, Apaches
chairman and chief executive officer. There is a portfolio of low-risk exploitation projects, and
we believe the complex structural setting holds reserve upside.
Over the past eight years, Apache has demonstrated the ability to increase the efficiency of
mature North Sea assets, find new reserves to extend field life, and operate in a safe and
environmentally responsible manner, Farris said.
Since acquiring the Forties Field in 2003, Apache has drilled about 100 development wells,
invested $3.2 billion, produced approximately 161 MMboe more than the proved reserves at the
time of the acquisition and added an estimated 171 MMboe in new reserves. Second-quarter 2011
net production from Forties averaged 56,985 barrels of oil per day, up from approximately 33,000
barrels per day in the second quarter of 2003, after Apache assumed operations.
Production from the Mobil North Sea LLC fields will add to the percentage of Apaches current
output that is indexed to the premium Brent crude oil benchmark price.
Apache will take on the ExxonMobil employees currently supporting the former Mobil North Sea
LLC assets. We look forward to a new period of growth with a strong, combined team, said James
L. House, region vice president and managing director of Apache North Sea Limited.
The transaction is subject to regulatory approvals and preferential rights. Apache intends to
fund the acquisition with cash.
We appreciate the opportunity to work with the ExxonMobil team to hammer out this
transaction, Farris said.
Apache will host a conference call to discuss the transaction at 10:30 a.m. Central time on
Wednesday, Sept. 21; listen to the call via a live webcast on Apaches website, www.apachecorp.com.
The slide presentation for the conference call is available on Apaches website. The webcast
replay will be archived on Apaches website for 30 days. The conference call will be available for
delayed playback by telephone for two weeks beginning at approximately 2 p.m. Central time on Sept.
21. To access the telephone playback, dial toll-free to (855) 859-2056 or (404) 537-3406 and enter
conference ID 12249939.
Apache Corporation is an oil and gas exploration and production company with operations in the
United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts
announcements, operational updates, investor information and copies of all press releases on its
website, www.apachecorp.com.
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as anticipates, intends, plans, seeks,
believes, estimates, expects and similar references to future periods. These statements
include, but are not limited to, statements about the anticipated closing of Apaches planned
acquisition of ExxonMobils Beryl Field and related assets in the U.K. North Sea and Apaches
expected production and proved reserves in the North Sea after the acquisition. While
forward-looking statements are based on assumptions and analyses made by us that we believe to be
reasonable under the circumstances, whether actual results and developments will meet our
expectations and predictions depend on a number of risks and uncertainties which could cause our
actual results, performance, and financial condition to differ materially from our expectations.
See Risk Factors in our 2010 Form 10-K as amended by Amendment No. 1 to our annual report on Form
10-K/A filed with the Securities and Exchange Commission for a discussion of risk factors that
affect our business. Any forward-looking statement made by us in this news release speaks only as
of the date on which it is made. Factors or events that could cause our actual results to differ
may emerge from time to time, and it is not possible for us to predict all of them. We undertake
no obligation to publicly update any forward-looking statement, whether as a result of new
information, future development, or otherwise, except as may be required by law.