Anadarko agrees to divest certain U.S. onshore assets
Posted: 10 September 2004
Anadarko Petroleum Corporation announced it has agreed to divest certain U.S. onshore properties to undisclosed parties for $850 million in cash and interests in two oil and gas fields in Wyoming.
The transaction, effective Sept. 1, 2004, will include an estimated 108 million barrels of oil equivalent (BOE) in proved reserves as of year-end 2003, and current daily net production of about 38,000 BOE, located in approximately 180 fields across Texas, Oklahoma, Kansas, Wyoming, Utah, Louisiana and Alabama. The properties to be divested include about 30 percent of Anadarko's fields worldwide, but only 4 percent of year-end 2003 reserves and 7 percent of current production.
As part of the sale, Anadarko will receive cash, as well as the buyers' interests in the Brown Cow and Hartzog Draw fields in Wyoming representing 2 million BOE of proved reserves and an estimated 7 million BOE of probable reserves. These assets complement Anadarko's unconventional resource development strategy and add to its activity in the region.
"This agreement marks another significant milestone in the execution of our refocused strategy. The divestiture of non-strategic properties allows Anadarko to focus on areas that have consistently produced the best results for us, as well as new growth areas," said Anadarko President and CEO Jim Hackett. "We're pleased with the terms of this transaction and the early execution, which keep us on target to generate at least $2.5 billion in after-tax proceeds from our divestiture program."
Other U.S. onshore assets targeted for divestiture, but not part of this sale, include a separate package in Southeast Colorado, the West Panhandle and Slaughter fields in Texas, and exploration acreage in the Deep Hugoton basin in Kansas and Oklahoma. These assets are in various stages of monetization: data rooms remain open for Southeast Colorado, with bids due Sept. 21; the Texas assets are being held for ongoing property trade discussions; and the Deep Hugoton exploration acreage remains available for third-party proposals.
The transaction is subject to normal closing conditions and purchase price adjustments, including preferential right elections. Closing is expected by Dec. 1, 2004.Transaction advisors for Anadarko for this sale are Deutsche Bank Securities Inc. and Randall & Dewey LLC.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and gas resources vital to the world's health and welfare. As of year-end 2003, Anadarko had 2.5 billion barrels of oil equivalent of reserves, making it one of the world's largest independent exploration and production companies. Anadarko's operational focus extends from the deepwater Gulf of Mexico, up through Texas, Louisiana, the Mid-Continent, western U.S. and Canadian Rockies and onto the North Slope of Alaska. Anadarko also has significant production in Algeria, Venezuela and Qatar.
For more see http://www.anadarko.com.
Posted by Richard Price,
Editor Pipeline Magazine
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