Apache Corporation announced on 6 Jul 17 that it will complete an exit from Canada upon the closing of three recent transactions.
Apache has agreed to sell its Apache Canada Ltd. subsidiary to Paramount Resources Ltd. This includes properties located principally in the provinces of Alberta and British Columbia. In a separate transaction signed in June, Apache agreed to sell its Provost assets in Alberta to an undisclosed privately owned company. Also in June, Apache sold its assets at Midale and House Mountain, located in Saskatchewan and Alberta, to Calgary-based Cardinal Energy Ltd.
Production from Apache’s Canadian operations averaged approximately 300 million cubic feet of gas equivalent per day for the second-quarter 2017, of which approximately two-thirds is natural gas. Aggregate proceeds from the three transactions are approximately $713 million (CA$ 927 million). These proceeds, subject to foreign exchange movement and customary closing adjustments, will be used to fund a portion of Apache’s 2017-2018 capital program, to reduce debt, or to improve overall liquidity.