Apache said that a subsidiary's settlement of a dispute regarding the preferential rights to acquire interests in the Yeso oil play in Eddy County, New Mexico, will enable Apache to operate the properties with an approximate 60% working interest.
Apache’s subsidiary acquired a 50% interest in the acreage in its earlier reported acquisition of BP’s oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico.
The subsidiary acquired an additional 10% interest and became operator as a result of the settlement of the dispute with Concho Resources and Marbob Energy.
As a result of the settlement, Concho will own approximately 40% of the acreage.
In the BP Permian transaction, which was completed in August, Apache’s subsidiary acquired assets with estimated proved reserves of 120 million barrels of oil equivalent (boe) and first-half 2010 net production of 21,800boe per day.
Apache is an oil and gas exploration and production company with operations in the US, Canada, Egypt, the UK North Sea, Australia and Argentina.