Anadarko to Sell Louisiana Gas Fields for $1.6B

Anadarko Petroleum Corp. (APC) said Tuesday it agreed to sell two gas fields in Louisiana to EXCO Resources Inc. (XCO) for $1.6 billion in cash.

Independent oil and gas producer Anadarko is selling off assets to cut debt after spending $22.5 billion to buy peers Kerr-McGee Corp. and Western Gas Resources earlier this year.

It has set a goal of trimming its debt to $12 billion by the end of 2007 from $26 billion at the end of the third quarter this year.

The company said it agreed to sell its Vernon and Ansley fields, located in Jackson Parish, Louisiana, to EXCO, which is focused on acquiring and developing onshore North American oil and natural gas properties.

The fields produced 192 million cubic feet equivalent per day from about 350 wells on 66,000 net acres as of Nov. 1, according to Anadarko.

Six drilling rigs and four work-over rigs are currently active in the fields.

EXCO said proved reserves at the fields are currently estimated to be about 466 billion cubic feet equivalent per day.

Anadarko expects to sell its Venezuela assets, production sites in Qatar, some onshore U.S. properties, and part of its K2 Gulf of Mexico development. It has already sold Canadian and Gulf of Mexico assets for more than $6 billion.

EXCO expects the sale to close in March 2007.