Apache Corp known for purchasing mature oil and gas properties and pulling more value out of them will be purchasing BP assets. They have negotiated for the purchase of several of BP’s oil and natural gas holdings throughout North America and Egypt. The assets will bring $7 billion for BP.
Apache CEO G. Steven Farris said the deal marks a “rare opportunity to acquire legacy positions from a major oil company. We seldom have an opportunity like this in one of our core areas let alone these.”
Apache was set to issue 21 million shares of common stock as well as $1.1 billion in preferred stock. The common offering is estimated to bring in $1.9 billion to Apache when figured against their closing price on Tuesday of $88.28 a share.
When first reporting that BP was looking to negotiate a deal with Apache, the Purdue Bay, Alaska operations were listed along with Alberta and British Columbia, Canada, the Permian Basin of Texas and New Mexico, and Egypt’s Western Desert. However, after the closed deal was announced the Purdue Bay, Alaska operation was not part of the deal. There was no reason given for why the Alaskan operation was not included. With the BP purchase, Houston, Texas based Apache has added estimated proved reserves of 385 million barrels of oil into its portfolio.
The sale for BP was part of the estimated goal of the company to sell off assets and raise $10 billion dollars toward the Gulf oil spill clean up funds.