Fieldwood Energy LLC closes on $3.75 Billion Sale of Apache Corp.'s Gullf Of Mexico Shelf Ops

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
3.8BB
Description

Acquired 500 blocks of leasehold and 100,000 BOE/d net production in the Gulf of Mexico.

Fieldwood Energy LLC has become the largest operated asset base on the Gulf of Mexico (GoM) Shelf with its $3.75 billion cash purchase of Apache Corp.’s (NYSE, Nasdaq: APA) GoM business, the companies announced Sept. 30.

The monumental deal provides a leasehold of more than 500 blocks and net production of 100,000 barrels of oil equivalent per day (BOE/d), which is 55% oil.

Under the deal, Fieldwood will assume all asset retirement obligations for the properties, which are estimated at a discounted value of about $1.5 billion as of June 30, 2013.

Houston, Texas-based Apache retains 50 percent of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested.

“Closing this acquisition within nine months of our formation represents a monumental achievement for our company and is the result of a tremendous effort by the operational, financial and legal employees and advisors at both Fieldwood and Apache,” Fieldwood President and Chief Executive Officer Matt McCarroll said in prepared remarks.

Fieldwood Energy, a Houston-based portfolio company of Riverstone Holdings LLC, is focused on buying and developing conventional oil and gas assets in North America, including the GoM. With its growth, the company has added 600 new employees in recent months.

Since its launch in 1954 with $250,000 in investor capital, Apache has grown into one of the world’s top independent oil and gas exploration and production companies.

“Completing this transaction is a significant step toward our goal of rebalancing Apache’s portfolio to focus on assets that can generate strong returns and drive more predictable production growth, including our deep inventory of offshore liquids assets in North America,” G. Steven Farris, Apache’s chairman and chief executive officer, stated in a press release.