Apache Corporation announced today it will complete an exit from Canada upon the closing of three recent transactions. Apache has agreed to sell its Apache Canada subsidiary to Paramount Resources. 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.
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.
Apache budgeted $125 million of capital expenditures to Canada for 2017 and 2018. Unspent allocations will be redirected to other areas of the portfolio. The company plans to update its 2017 and 2018 guidance following the closings of the three transactions. The Cardinal transaction closed in late June, and the remaining two are expected to close by the end of August 2017. (Source and Image: Apache / Drilling crew in Apache House Mountain)