WPX Energy expects to receive approximately $294 million for its international interests subject to the successful consummation of the definitive merger agreement entered into between privately held Pluspetrol Resources Corporation and Apco Oil and Gas International.
WPX’s international interests include a 69 percent controlling equity interest in Apco Oil and Gas International and additional non-material assets in wholly-owned Northwest Argentina and a 5 percent interest in Apco Argentina.
Together, these non-operated, international holdings comprised 4 percent of WPX’s second-quarter 2014 total production volumes and 3 percent of the company’s 2013 year-end proved reserves.
“A series of significant transactions this year are shaping a transformed and more focused WPX,” said President and Chief Executive Officer Rick Muncrief. “We are moving value forward, monetizing non-core assets and simplifying our business scope. All of these actions are clearing the runway for our long-term plans.”
WPX is hosting a webcast on Thursday, Oct. 9, at 10 a.m. Eastern to discuss its multi-year business strategy. Participants are encouraged to access the webcast and slides at www.wpxenergy.com. The slide presentation will be made available post-market on the day prior to the event.
Already this year, WPX has completed the sale of working interests in some of its mature gas wells drilled prior to 2009 for $355 million, announced the sale of its Wyoming coalbed methane properties, bolstered its acreage in San Juan Basin oil, and taken on a partner to accelerate drilling in the Piceance Basin’s Trail Ridge field.
“We expect to execute,” said Muncrief. “We have a bias for action and we’re going to keep taking a pro-active approach to value creation.”
Apco’s board unanimously approved the merger agreement with Pluspetrol subject to shareholder approval. WPX has executed a power of attorney to vote in favor of the adoption of the merger agreement unless the merger agreement is terminated prior to shareholder approval. BofA Merrill Lynch acted as WPX’s exclusive financial advisor in connection with this transaction.
