Apache to sell selected Canadian oil and gas assets

US-based oil and gas company Apache has agreed to divest certain oil and gas assets in Canada in two different transactions for a combined value of $112m.

The company will sell its Hatton, St Lina, Marten Hills, Snipe Lake, Valhalla, and a part of its Hawkeye producing properties.

The assets are primarily dry gas developments, which includes aroundt 4,000 operated and 1,300 non-operated wells in the Saskatchewan and Alberta.

These wells have produced around 38 million cubic feet of natural gas and 750 barrels of oil, condensate and natural gas liquids a day in the second quarter of 2013.

Apache has announced divestments of approximately $7.2bn, which includes transactions involving oil and gas assets in Canada, the Gulf of Mexico and Egypt.

Apache president and COO Rodney J Eichler said that the company is focused on growing liquids production from a deep inventory of crude oil and liquids-rich opportunities in the Western Sedimentary Basin of Canada.

"Our extensive remaining acreage in these areas can generate attractive rates of return and provide for more predictable production growth," Eichler added.

"We also remain focused on advancing the Kitimat LNG project to monetise large unconventional resources in the Liard and Horn River basins in northern British Columbia."

In August, Apache signed an approximately $214m agreement with Ember Resources to sell oil and gas-producing properties located in the Nevis, North Grant Lands and South Grant Lands areas of western Alberta.