Last month Apache announced the acquisition of the BP assets in the Permian Basin, Canada and Egypt for $7 billion. A deposit of $5.0 billion was made on July 30th, 2010 and the expected close is 3Q or 4Q 2010. The total production in the first half of 2010 was 82.8 Mboe/d with 28.5 Mboe/d from the Permian Basin, 46.5 Mboe/d from Canada and 7.8 Mboe/d from Egypt. The total net acreage of the deal is approximately 2,435K net acres with the majority in Canada at 1,278K acres and 763K acres the Permian Basin which includes 405K net mineral acres.
Apache, with recently acquired Mariner Energy, produced 65.0 Mboe/d in the Permian Basin in the first half of 2010 and with the new BP Permian assets will increase that production 44% to 93.5 Mboe/d. Their acreage in the Permian also increased 104% from 731K to 1,494K net acres. Resource plays in the acreage include Yeso and Spraberry and Apache is now expanding their interest in Eunice, NMFU, NEDU, Warren and more.
The following is a map of Apache, BP and Mariner acreage in the Permian Basin from Apache’s presentation regarding the BP deal.
Permian Basin Assets" width="390" height="499" />
The deal brought Apache 739 drilling locations in the Yeso play in New Mexico with a drilling and completion cost of $1.5 million/well. These wells average a first year’s production of 40 Bbls/d with a EUR of 102 Mboe (80 Mbo of oil and 134 Mmcf of gas). In the Spraberry play Apache now has 977 additional drilling locations with infill drilling and recompletions across the play. Drilling and completion costs are $1.5 million/well with an average first year production of 50 Bbls/d and a EUR of 135 Mboe (80 Mbo of oil and 329 Mmcf of gas).
There are also associated Permian midstream assets that came with the acquisition. Apache picked up the Block 31 plant, Crane plant and Terrell plant with the percentage of working interest at 86.5%, 100% and 23% respectively. Throughput capacity for each plant is 72 Mmcf/d for Block 31, 26 Mmcf/d for Crane and 86 Mmcf/d for Terrell; Terrell being the only plant not operated by BP and now Apache.
Coming soon: DI Energy Strategy Partners will be releasing the Acquisition and Divestiture Pipeline which will include these types of deals and links to information regarding each deal.
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