Apache to operate Permian Yeso oil play acreage in New Mexico

Source: Apache Corporation

Apache Corporation (NYSE: APA) announced that a subsidiary's settlement of a dispute concerning preferential rights to purchase interests in the Yeso oil play in Eddy County, N.M., will enable Apache to operate the properties with an approximate 60-percent working interest.

Apache's subsidiary acquired a 50-percent interest in the acreage in its previously announced acquisition of BP's oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico. The subsidiary acquired an additional 10-percent interest and became operator as a result of the settlement of the dispute with Concho Resources and Marbob Energy Corp. As a result of the settlement, Concho will own approximately 40 percent of the acreage.

In the BP Permian transaction, which was completed in August, Apache's subsidiary acquired assets with estimated proved reserves of 120 million barrels of oil equivalent (boe) and first-half 2010 net production of 21,800 boe per day.

The Permian transaction is one element of Apache's previously announced agreement to acquire all of BP's oil and gas operations, acreage and infrastructure in the Permian Basin and Egypt's Western Desert and substantially all of BP's upstream natural gas business in western Alberta and British Columbia in Canada.

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