Apache To Boost Liquids Portfolio With US$2.85bn Deal For Cordillera Energy

Apache is looking to expand its US tight oil portfolio with a US$2.85bn bid for Cordillera Energy. The acquisition will add 18,000 barrels of oil equivalent (boe) per day to the company's current so-called 'central US' output of 47,000boe/d. We expect further production growth to follow with new drilling earmarked for 2013. The deal is the third unconventional liquids-focus acquisition in the US this year. We expect further consolidation in the sector as low gas prices continue to incentivise higher margin liquids production.

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