2010-09-09 04:22:56 - Recently published research from GlobalData, "Apache To Acquire Upstream Assets In Western Canada From BP - Deal Analysis from GlobalData", is now available at Fast Market Research

Apache Corporation (Apache), an oil and gas exploration and production company, agreed to acquire upstream gas assets in Western Canada from BP p.l.c. (BP), an energy company, for a purchase consideration of $3.25 billion. The acquisition includes Western Canadian gas business with net production of 240 million cubic feet (MMcf) of gas per day and 6,500 barrels (Bbl) of liquids per day. The assets have net proved reserves of approximately 214 million barrels oil equivalent (MMBoe) and net resources of approximately 1,368 MMBoe. The producing assets are managed by the following operating areas: Noel, Ojay, Chinchaga, Wapiti, Fox Creek, Edson, Marten Hills, South West, and St. Lina. The acquisition also includes proposed Mist Mountain coal bed methane project.

Apache intends to

finance the acquisition with a combination of debt and equity securities as well as cash in hand. As a part of the transaction, Apache will advance $3.25 billion in cash of the purchase price to BP on July 30, 2010. This advance will be returned to Apache or applied to the purchase price at closing. Under the terms of agreement, BP shall issue a convertible debenture in favor of Apache in an amount equivalent to the sale price for such assets. The debenture will automatically exchange for the assets that are sold to Apache on closing of the transaction.

Apache is buying a sizeable production base and 1.3 million net acres that include interests in emerging unconventional plays such as the Montney, Cadomin, Doig and coalbed methane. The transaction implies deal values of $69,892.47 per boe of daily production and $15.19 per boe of net proved reserves.

Scope

* Rationale behind Apache acquiring BP's Western Canadian assets
* Strategic Benefits for the companies involved
* Geography covered -Canada

Reasons to buy

* Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
* Identify the most lucrative segments to leverage on the growth oppurtunities available in the Canadian oil & gas market
* Get a detailed analysis of a deal to enable you to take better decisions

For more information or to purchase this report, go to:
- www.fastmr.com/prod/80215_apache_to_acquire_upstream_assets_in_w ..

Report Table of Contents:

1 Table of Contents
1 Table of Contents 1
1.1 List of Tables 2
1.2 List of Figures 2
2 GlobalData Deal Analysis 3
2.1 Summary 3
2.2 Deal Overview 3
3 Apache To Acquire Upstream Assets In Western Canada From BP 3
3.1 Deal Overview 3
3.2 Deal in Brief 3
3.3 Deepwater Horizon rig explosion led to a major oil spill 4
3.4 Gulf of Mexico Oil Spill: BP to sell off its assets to meet the likely obligations 4
3.5 BP's upstream natural gas business in Western Alberta and British Columbia, excluding oil sands and NGLs, is one of the key acquisitions 5
3.6 Deal likely to result in a significant CBM play being added to Apache's portfolio 6
3.7 Post-acquisition, Apache's production per day would rise 66%, while its proved reserves will expand by 42% 8
3.8 Apache and BP to make payment and transfer assets in a 'structured deal' 8
3.9 Apache bought production at a premium while reserves were at a discount 9
3.10 Apache is constantly looking for inorganic growth opportunities 9
3.11 Deal Financials and Valuations 11
3.11.1 Companies Involved 11
3.11.2 Deal Financials 11
3.11.3 Deal Rationale 11
3.11.4 Advisor Information 11
3.11.5 Detailed Target Information 12
3.11.6 Production and Reserves Information 12
3.11.7 Transaction Implied Values 12
3.11.8 Commodity Prices Information 13
3.11.9 Detailed Acquirer Information 13
3.11.10 Detailed Vendor Information 14
4 Appendix 15
4.1 About Energy eTrack 15
4.2 Methodology 15
4.2.1 Coverage 15
4.2.2 Secondary Research 16
4.2.3 Primary Research 16
4.2.4 Expert Panel Validation 16
4.3 Contact Us 17
4.4 Disclaimer 17

1.1 List of Tables
Table 1: Apache Corporation in Western Canada, With and without BP's Asset Acquisition 8
Table 2: Western Canada, E&P Assets Transactions and Acquisitions Details, May 2010- May 2007 9
Table 3: Apache Corporation, Asset Acquisition Details 10
Table 4: Companies Involved 11
Table 5: Financials of the Deal 11
Table 6: Advisor Information 11
Table 7:Target Information 12
Table 8: Target's Production and Reserves Information 12
Table 9: Company Valuation Multiples 12
Table 10: Commodity Prices in $, Last Close 13
Table 11: Acquirer Information 13
Table 12: Vendor Information 14

1.2 List of Figures
Figure 1: Oil Spill in the Gulf Mexico, July 21, 2010 4
Figure 2: BP and Apache, Canada E&P Business Before Acquisition, 2010 5
Figure 3: Montney Tight Gas Project, 2010 6
Figure 4: Mist Mountain Operating Area, 2010 7
Figure 5: Ojay Operating Area, 2010 7
Figure 6: BP Share Price, 22 Apr 2010- 21 JUL 2010 10
Figure 7: GlobalData Methodology 15

About GlobalData

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