The final amount will be determined at closing, which is expected in mid-February 2010. The closing is subject to bankruptcy court approval.
According to the terms of the transaction, a wholly owned subsidiary of Anadarko Petroleum will acquire more than 80,000 net acres in this basin from TXCO for approximately $93m and increase its operated working interest in these properties to 75%.
Newfield Exploration will acquire substantially all of TXCO’s remaining assets in the Maverick Basin, which include more than 350,000 gross acres, for approximately $217m. Current net production of the assets to be acquired by Newfield is 1,500 BOEPD, of which two-thirds is oil. The acreage has multiple geologic targets, primarily in the Eagleford and Pearsall formations.
Lee Boothby, president and CEO of Newfield Exploration, said: “This acquisition is consistent with our goal of focusing on large, domestic plays of scale. Including this transaction, we have added more than 500,000 net acres in long-lived resource plays over the last several months. Our acquisition of TXCO’s assets will mark an entry into the Maverick Basin and provide us with a deep inventory of potential locations – both oil and gas.
“We have been active in South Texas for more than a decade and our people have a proven track record of success. We will ensure that our team is focused on the right assets in this region to create long-term value for our shareholders. We expect to have an active drilling program in 2010.”
