Apache Corp. sells off Cana­dian as­sets in strate­gic exit

The Guardian (Charlottetown) - - BUSINESS -

CAL­GARY — Apache Corp. says it has sold its as­sets in Bri­tish Columbia, Al­berta and Saskatchewan for close to $1 bil­lion in a strate­gic exit from Canada.

The Hous­ton-based oil and gas com­pany said late Thurs­day that leav­ing Canada was part of its goal of stream­lin­ing its port­fo­lio to fo­cus on projects in the United States, United King­dom and Egypt. Apache said the sell-off will mean a sig­nif­i­cant re­duc­tion in as­set re­tire­ment obli­ga­tions and an­nual over­head costs, as well as im­prove the rev­enue and cash gen­er­ated on the en­ergy it pro­duces. It said the $125 mil­lion in spend­ing planned for 2017 and 2018 in Canada would be redi­rected to other ar­eas of its port­fo­lio.

The com­pany said its sell­ing off its Cana­dian as­sets in a trio of deals worth about $927 mil­lion to Para­mount Re­sources (TSX:POU), Car­di­nal En­ergy Ltd (TSX:CJ), and an undis­closed pri­vately owned com­pany, with the Car­di­nal deal al­ready closed. Para­mount said Thurs­day that along with buy­ing Apache as­sets in Al­berta and B.C. for about $460-mil­lion, it was also merg­ing with Tril­ogy En­ergy Corp (TSX:TET) in an all-share deal.

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