Apache Agrees to Sell Canadian Operations for $112 Million
By John Kell
Apache Corp. (APA) will sell some oil- and gas-producing operations in Canada in two separate transactions valued at a combined $112 million, a move that comes weeks after the firm struck a deal to sell a stake in its Egypt business.
Apache has announced divestitures totaling nearly $7.2 billion in recent months, using proceeds of those sales to pay down debt, buy back shares and shore up the company's balance sheet after years of aggressive acquisitions.
In the latest asset sale, the oil-and-gas producer said it agreed to sell primarily dry gas developments located in Saskatchewan and Alberta, comprised of about 4,000 and 1,300 non-operated wells.
Those wells averaged daily production of 38 million cubic feet of natural gas and 750 barrels of oil, condensate and natural gas liquids, net to Apache, during the second quarter.
Both transactions are expected to close in the fourth quarter. The names of the two buyers weren't being disclosed, according to an Apache spokesman.
Apache last month stuck a deal with China Petrochemical Corp. to sell a 33% stake in the company's Egyptian oil and gas business for $3.1 billion. That move helps Apache continue to diversify away from its reliance on Egypt, which accounted for 15% of its production in the second quarter of this year, down from 25% in 2010.
Apache's shares inched down 0.1% to $88.15 in after-hours trading.
Write to John Kell at email@example.com
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