Apache’s latest asset sale brings it close to $4B goal

Oil and gas exploration and production firm Apache Corp. has just about reached its goal of selling $4 billion in assets by the end of this year.

The Houston-based company said Thursday it is selling some Canadian oil and gas producing assets to Ember Resources for $214 million.

The deal follows Apache’s announcement last month that it would sell its shallower water Gulf of Mexico producing assets to a unit of private equity firm Riverstone Holdings for $3.75 billion.

Together, the two deals equal $3.96 billion.

When Apache announced the Gulf deal, its chief executive hinted that the company may sell assets beyond its $4 billion goal. However, he didn’t identify what further assets the company might be willing to sell or how much more money it might seek to raise.

The Canadian assets are in the Nevis, North Grant Lands and South Grant Lands areas of western Alberta. They include 621,000 acres and more than 2,700 wells that had average net production of 67 million cubic feet of gas and 237 barrels of liquid hydrocarbons per day during the second quarter.

Apache said it will keep its full stake in horizons below where the resources are currently being produced. That would allow it to continue to explore for new resources. A similar arrangement was part of the Gulf asset sale.

The Canadian deal is expected to close during the third quarter.

Apache has said it plans to use the proceeds of its asset sales to reduce debt and to repurchase Apache shares under a 30-million-share repurchase program.

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