The company intends to use the proceeds of this transaction to buy back its common shares under the $30m share repurchase program that was authorised in 2013, and is an increment to its earlier $2bn share re-purchase announcement.
As part of the deal, the company will sell dry gas-producing properties including 622,600 gross acres in the Ojay, Noel and Wapiti areas in Alberta and British Columbia.
The transaction, which is expected to be completed in April 2014, is subject to customary post-closing adjustments.
Apache chairman, CEO and president Steven Farris said the transaction is part of company’s portfolio rebalancing, which was undertaken last year to focus on growing liquids production from a deep inventory of crude oil- and liquids-rich opportunities in North America.
"The sale of these natural gas assets – and other Canadian gas-producing properties sold last year – will permit Apache’s Canada Region to concentrate on liquids-rich opportunities that can provide more attractive rates of return and more predictable production growth," Farris added.
