Apache to sell remaining Canadian assets by next month
US-based oil and gas exploration and production company Apache has agreed to sell its subsidiary Apache Canada to Paramount Resources for an undisclosed sum.
With the proposed sale, Apache intends to fully exit from Canada upon the closing of three recent transactions.
Last month, the company agreed to sell its Provost assets in Alberta to an undisclosed company.
Additionally, it completed the sale of its Midale and House Mountain assets in Saskatchewan and Alberta to Canada's Cardinal Energy.
Apache CEO and president John Christmann IV said: "Today's announcement is consistent with Apache's objective of streamlining our portfolio and focusing on assets in the US, UK North Sea and Egypt.
“This strategic decision will enhance the company's resource allocation to its primary growth areas, particularly within the Permian Basin.”
Altogether, the three transactions will accrue around $713m to the company, which will be used to fund a portion of its 2017-2018 capital programme, to reduce debt, or to improve overall liquidity.
The company noted that its Canadian operations produced around 300 million cubic feet of gas equivalent per day for the second quarter of this year.
It intends to redirect the unspent portion of its $125m budgetary allocation with regards to its Canadian businesses towards other areas of the portfolio.
Along with Provost assets, the sale of Apache Canada is expected to close by next month.