Monday, April 12, 2010

Apache (NYSE:APA) Acquiring Devon Energy (NYSE:DVN) Assets in Gulf of Mexico

Apache acquired shelf assets from Devon Energy

Apache Corp. (NYSE:APA) announced today they're acquiring the shelf assets of Devon Energy (NYSE:DVN) in the Gulf of Mexico for $1.05 billion.

Shelf assets refers to gas and oil that is located in shallower waters. Apache said they're going to fund the acquisition, for the most part, with short-term obligations and cash.

Once the deal is closed, estimates are the properties will generate about 55 million cubic feet of gas on a daily basis, as well as 9,500 barrels of oil a day.

Net proven and probable reserves are estimated to be around 83 million of barrels of oil equivalent as of the end of 2009.

The deal is slated to be closed in June 2010.

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