Boston, MA 05/09/2014 (wallstreetpr) – On May 8, 2014, Apache Corporation (NYSE:APA) made an announcement that shook the entire industry. The company declared that its Gulf of Mexico subsidiary will sell away its non-operated interested based in the Heidelberg and Lucius development projects. In addition, the company will also forego its 11 primary term deepwater exploration blocks. Apache Corporation (NYSE:APA) will give up its properties to Freeport-McMoRan Copper & Gold Inc.
Freeport takes over the stakes
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is indeed fortunate to have such a huge portion of the company’s assets. Certainly, it has managed to find an easy way to spend part of $3.1 billion that it accrued from its sale of Texas properties. Freeport, on its part, has also made the announcement of acquiring the Apache’s stakes. The entire transaction will fetch Apache an amount of $1.4 billion.
It has been heard that Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) will utilize the returns from the sale of Eagle Ford acreage to Encana Corporation (USA) (NYSE:ECA) to finance the purchase. The acquisition is contingent upon customary closing conditions. It is assumed to close by June 30, 2014.
Many unexamined prospects
Apache Corporation (NYSE:APA) efficiently handles gas and oil exploration, together with production. It has its operations in the U.S., Egypt, U.K., Australia and Canada. The CEO and executive vice president for international and offshore operations mentioned that the company has combined its deepwater as well as shelf technical teams in order to emphasize on subsalt along with other deeper exploration opportunities. Such explorations blocks will in water depths less than 1000 feet. These scopes have been unexamined by the industry yet, added the CEO.
Speaking on the acquisition, CEO added that Apache Corporation (NYSE:APA) has a specific interest in almost 650 blocks in the Gulf of Mexico. In addition, discoveries on the shelf offer greater options to bring gas and oil to the market. Alongside, Apache also continues to pursue its joint venture as well as monetization opportunities for its deepwater prospects.
