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APA Apache confirms it will accquire BP assets in Permian Basin,
Co confirms it has agreed to acquire all of BP's (BP) oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico and Egypt 's Western Desert . Apache also will acquire substantially all of BP's upstream natural gas business in western Alberta and British Columbia . Apache will pay $7 billion for the assets, which include estimated proved reserves of 385 million barrels of oil equivalent. As a part of the acquisition, Apache will advance $5 billion of the purchase price to BP on July 30, 2010, ahead of the anticipated closing. This advance will be returned to Apache or applied to the purchase price at closing. Apache intends to finance the acquisition with a combination of debt and equity securities as well as cash on hand. The company has also obtained a $5 billion bridge loan facility to backstop any financing requirements. Apache expects the transaction to be modestly accretive to cash flow and per-share production and reserves and neutral to earnings per share in the first full year.
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