Canadian Natural Resources Ltd., Calgary, (Toronto, NYSE: CNQ) plans to acquire Anadarko Canada Corp., a subsidiary of Anadarko Petroleum Corp., The Woodlands, Texas, (NYSE: APC) for aggregate consideration of US$4.1 billion.

Anadarko Canada's land and production base is in Western Canada with concentrated gas-weighted assets and a long reserve life. Current gross production is approximately 358 million cu. ft. of gas and 9,300 bbl. of oil and gas liquids per day.

Proved reserves are 1.6 trillion cu. ft. of gas and 48 million bbl. of oil for a total 308 million BOE. The assets also include approximately 1.5 million net undeveloped acres and facilities in northeastern British Columbia and northwestern Alberta.

The assets have more than 1,500 drilling locations identified and additional acreage in the Foothills.

Canadian Natural has retained Scotia Waterous as financial advisors and Citigroup Global Markets Inc., RBC Capital Markets, CIBC Capital Markets and BMO Capital Markets as strategic advisors. Anadarko Canada has retained Tristone Capital Inc. as its divestment agent.

The Canadian asset sale is a fund-raiser toward retiring more than $20 billion in debt Anadarko has taken on to acquire Kerr-McGee Corp., Oklahoma City, and Western Gas Resources Inc., Denver.

W&T Offshore Inc. (NYSE: WTI) has acquired Anadarko's Gulf of Mexico shelf subsidiary for some $1 billion. W&T funded the purchase through its senior secured credit facility and with cash on hand.

The properties were owned by Kerr-McGee and W&T had a purchase agreement prior to Anadarko's bid for the company. The shelf assets include interests in approximately 100 fields on 242 offshore blocks (including 88 undeveloped blocks) across the western, central and eastern Gulf, primarily in less than 1,000 feet of water.

Tracy W. Krohn, W&T chairman and chief executive, says, "By far, this is the largest transaction in the company's history and we are anxious to begin exploring and optimizing these properties. We have established a solid track record for exploiting acquired assets and are confident that these properties offer as much upside potential as those we have acquired in the past...."

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