Apache Corp. (NYSE: APA) said Monday it will sell oil and gas assets in the Deep Basin area of western Canada for $374 million.
Houston-based Apache said the assets are primarily dry gas-producing properties comprising 622,600 gross acres (328,400 net acres) in the Ojay, Noel and Wapiti areas of Alberta and British Columbia.
Apache didn’t name the buyer.
It expects the deal to close by the end of April.
Apache said it will use the proceeds to buy back common shares under the 30 million share-repurchase program authorized last year.
“This transaction is part of Apache’s portfolio rebalancing, which was undertaken last year to enable Apache to focus on growing liquids production from a deep inventory of crude oil- and liquids-rich opportunities in North America,” G. Steven Farris, Apache’s chairman, CEO and president, said in a statement.
“The sale of these natural gas assets — and other Canadian gas-producing properties sold last year — will permit Apache’s Canada Region to concentrate on liquids-rich opportunities that can provide more attractive rates of return and more predictable production growth.”
Earlier this month, Apache announced completion of the sale of its Argentina operations and properties to YPF SA for $800 million in cash and assumed $52 million of bank debt.
In September last year it agreed to sell some oil and gas producing properties in Canada for $112 million, including holdings in Hatton, St. Lina, Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye acreage. Most were primarily dry gas developments in Saskatchewan and Alberta.
In August, Apache announced the sale of its 33% stake of its Egypt oil and gas business for $3.1 billion in cash to a unit of China Petrochemical Corporation.
At almost the same time, it said it was selling assets in Alberta’s Nevis, North Grant Lands and South Grant Lands areas to Ember Resources Inc. for $214 million.