Apache has acquired BP's oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico, which include ten Permian field areas with estimated proved reserves of 141 million boe (65 per cent liquids).

In addition, the company acquired first-half 2010 net production of 15,110 barrels of liquids and 81mmcf of gas per day, and two operated gas processing plants alongwith 1.7 million gross acres, including 405,000 net mineral and fee acres, in prospective areas of the basin with substantial opportunities for new drilling.

Apache paid $3.1bn for the Permian properties, including a $1.5bn deposit paid on July 30 and the balance paid on closing. The effective date of the transaction was July 1. BP will continue to operate the properties on Apache's behalf through November 30.

The Permian transaction is one element of Apache's earlier agreement to acquire all of BP's oil and gas operations, acreage and infrastructure in the Permian Basin and Egypt's Western Desert and substantially all of BP's upstream natural gas business in western Alberta and British Columbia in Canada.

Completion of Apache's acquisition of BP assets in Canada and Egypt is subject to customary regulatory approvals and conditions. Apache is financing the acquisitions with proceeds from its recently completed equity offerings, debt and cash on hand.