Apache Buying Cordillera Energy In $2.85B Deal

By Salon Staff

Published January 23, 2012 11:45AM (EST)

HOUSTON (AP) — Oil and gas producer Apache Corp. is buying privately held Cordillera Energy Partners III LLC in a deal valued at $2.85 billion.

The acquisition gives Apache access to Cordillera's approximately 254,000 net acres in the Granite Wash, Tonkawa, Cleveland and Marmaton areas in western Oklahoma and the Texas Panhandle.

Estimated proved reserves are 71.5 million barrels of oil equivalent per day, with current net production at 18,000 barrels of oil equivalent per day.

Those involved in the transaction, including EnCap Investments, other institutional investors and Cordillera management, will receive about $600 million in Apache stock. It says the rest of the acquisition will be paid in cash.

Apache said Monday that the deal is expected to add to its earnings starting this year.

The transaction is expected to close in the second quarter.

Salon Staff

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