Anadarko to sell Canadian subsidiary
  by: OilOnline
  Thursday, September 14, 2006

Anadarko Petroleum Corporation has agreed to sell its wholly owned subsidiary, Anadarko Canada Corporation, to Canadian Natural Resources Ltd. for $4.24 billion USD, including estimated working capital adjustments. Anadarko's interests in the Mackenzie Delta and other Canadian arctic frontier properties are excluded from this sale.

At the June 30, 2006, effective date of the sale, ACC produced approximately 340 million cubic feet equivalent per day, 85 percent of which was natural gas. At year-end 2005, ACC had proved reserves of approximately 262 million barrels of oil equivalent, approximately 75 percent of which were proved developed.

"This divestiture is an important step in refocusing the portfolio and reducing debt following our acquisitions of Kerr-McGee and Western Gas Resources in August, and we are pleased with the value and expediency of this preemptive transaction," Anadarko Chairman, President and CEO Jim Hackett said. "We thank all of our Canadian employees for the value they have created for our shareholders over the past six years and for their contributions to their fellow employees at Anadarko."

The transaction, which will be effected by the sale of stock in ACC, is subject to normal closing conditions and purchase price adjustments and is expected to close by the end of October. Anadarko's transaction advisor for this sale is Tristone Capital Inc. and the company's legal advisor is Stikeman Elliott LLP.