Denver-based Cordillera Energy Partners III Monday announced that it is merging with Houston-based Apache Corporation through an agreement in which Apache will pay $2.85 billion for Cordillera. The $2.85 billion is comprised of $600 million in common shares and $2.25 billion in cash.
The closing is expected on April 30.
Cordillera noted that it owns a leading position in the western Anadarko Basin, which it called one of the most attractive and “highest return North American onshore basins.”
In announcing its acquisition of Cordillera, Apache noted that the privately held Denver company has substantial operations that include approximately 254,000 net acres in the Granite Wash, Tonkawa, Cleveland and Marmaton areas of western Oklahoma and the Texas Panhandle.
Apache said that in addition to the estimated proved reserves of 71.5 million barrels of oil equivalent and current net production of 18,000 barrels of oil equivalent per day, Cordillera has assembled a leading acreage position with significant resource potential including 14,000 potential drilling locations in the “liquids-rich”Anadarko Basin.
“This is an important step for Apache – a unique bolt-on opportunity that more than doubles Apache’s acreage in a highly liquids-rich fairway in the Anadarko Basin,” said G. Steven Farris, chairman and chief executive of Apache.
George H. Solich, president and chief executive of Cordillera, said the merger “presents a tremendous opportunity of Apache to combine the Cordillera assets with Apache’s legacy Western Anadarko Basin position creating a platform for a multi-decade development program in some of the most economic, oil and liquids-rich gas targets in the onshore United States.”
Solich added that the combination is “an excellent outcome for Cordillera shareholders.”
Solich and his team will transition Cordillera’s operations and asset base to Apache over the coming months to ensure the continued successful development of the properties.
“We are thrilled to be able to announce such a win-win transaction with a company we share so much history and look forward to working with the Apache team to continue to grow the asset base,” said Tad R. Herz, executive vice president and CEO of Cordillera.
Cordillera said that on completion of the transition, the Cordillera team plans to build upon its previous three iterations of Codrillera companies in the formation of another domestic venture.
Apache Corporation is an oil and gas exploration and production company with operations in the U.S., Canada, Egypt, the North Sea, Australia and Argentina. Cordillera Energy Partners III is a privately held, acquisition, exploration and production company whose principal shareholder in EnCap Investments LP, together with other institutional and individual investors.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
