Apache to Buy $7 Billion in Assets from BP (BP, APA)

Apache Corp.

just announced that it will be buying all of BP’s

oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico and Egypt's Western Desert. APA will also acquire nearly all of BP's upstream natural gas business in the districts of western Alberta and British Columbia. Apache will pay $7 billion for the assets, which include estimated proved reserves of 385 million barrels of oil equivalent. PR Newswire reports that, “Net production from the properties in the first half of 2010 was 28,000 barrels of liquid hydrocarbons and 331 million cubic feet of gas (MMcf) per day, or a total of approximately 83,000 boe per day. By comparison, in the just-completed second quarter of 2010 Apache produced 646,866 boe per day. The transaction also adds 2.4 million net acres to Apache's global portfolio.” SOURCES: Apache Corporation and PR Newswire