Apache's $7B Acquisition From BP Fleshes Out Oil, Gas Assets

HOUSTON (Dow Jones)--Apache Corp's acquisition of certain BP PLC (BP, BP.LN) assets for $7 billion fleshes out the oil and gas producers' existing assets and represents a "strategic exit" for BP from three regions, Apache's chief executive said Tuesday "This really plays to Apache's core competencies of finding value in under-worked assets," CEO Steven Farris said during a conference call to discuss the acquisition. The Houston-based oil and gas producer is acquiring BP's Permian Basin assets in Texas and southeastern New Mexico in the U.S., its western Canada natural-gas exploration and production assets and the Western Desert business concessions and East Badr El-din exploration concession in Egypt. Net production from the properties during the first half of 2010 was 83,000 barrels of oil equivalent a day. Apache already has operations in all of those regions. The transaction will be financed through a combination of cash and debt. It will also issue equity, selling 21 million common shares plus $1.1 billion preferred shares. The acquisition won't affect the Apache's earlier agreement to acquire Mariner Energy Inc. for $2.7 billion, the company said. The deal will help BP finance the mounting costs of cleaning up the Gulf of Mexico oil spill. -By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com (END) Dow Jones Newswires July 20, 2010 17:57 ET (21:57 GMT)