Apache to Acquire Cordillera Energy Partners III LLC for $2.85 Billion
- 254,000 net acres in liquids-rich plays in Anadarko Basin of Texas, Oklahoma
- Net production of 18,000 barrels of oil equivalent per day
- Proved reserves of 71.5 million boe
- 14,000 potential drilling locations
In addition to estimated proved reserves of 71.5 million barrels of oil equivalent and current net production of 18,000 boe per day, Cordillera has assembled a leading acreage position with significant resource potential including 14,000 potential drilling locations in liquids-rich
"This is an important growth step for Apache — a unique bolt-on opportunity that more than doubles Apache's acreage in a highly liquids-rich fairway in the
"Multiple, stacked horizontal targets provide decades of potential drilling locations," Farris said. "Because 80 percent of revenue comes from liquid hydrocarbons production, this transaction provides compelling economics at current commodity prices."
The acquisition is expected to be accretive to Apache's earnings and cash flow beginning in 2012. The development drilling program is self-funding beginning in 2013.
The sellers, including
"This transaction presents a tremendous opportunity for Apache to combine the Cordillera assets with its legacy western
Cordillera will continue to acquire acreage in the area on Apache's behalf through closing.
A wash, including the Granite Wash, consists of a series of thick, multi-layer, liquids-rich sandstones and conglomerates. While it is considered "tight" by conventional standards, the Granite Wash possesses reservoir properties superior to typical shale resource plays, and responds well to horizontal drilling with multi-stage fracturing completions. A typical producing column in the acreage fairway is more than a mile thick with up to five liquids-rich Granite Wash targets and five additional oil-bearing tight sandstone targets. Approximately 50 percent of the hydrocarbon stream is liquid — condensate and natural gas liquids. Additional deep gas horizons include the Skinner,
As a result of Apache's shift to horizontal drilling with multi-stage completions, horizontal wells drilled in the last three years — all successful — now account for about half of Apache's
Apache's advisers on the transaction were Goldman, Sachs & Co. and