Anadarko Petroleum Corporation has agreed to purchase BP America Production Company's 93-percent interest in the Wattenberg Processing Plant (Wattenberg Plant) for approximately $575.5 million. The Wattenberg Plant, located in Adams County in northeast Colorado, has the capacity to process approximately 195 million cubic feet per day (MMcf/d) of natural gas and 15,000 barrels per day of natural gas liquids and gas condensate. Upon closing, Anadarko will operate and have 100-percent ownership of the plant.

"With Anadarko volumes representing about 70 percent of the current throughput, the Wattenberg Plant is a strategic acquisition that further aligns our midstream and upstream assets in one of our expanding core areas," said Chuck Meloy, Anadarko's Sr. Vice President, Worldwide Operations. "We are the largest producer in the Wattenberg field, with current sales volumes of approximately 63,000 BOE (barrels of oil equivalent) per day, and our early efforts in the emerging horizontal Niobrara play are very encouraging. With the anticipated growth in the DJ Basin, we expect this acquisition to improve field recoveries, allow for future expansion and capture efficiencies that enable us to reduce operating expenses.

"The Wattenberg Plant, when combined with Western Gas Partners, LP's ownership position in the Fort Lupton Plant and the recently acquired Platte Valley Plant, gives Anadarko and other area producers exceptional midstream options for development within the Wattenberg field and growth in the greater DJ Basin. Given our flexibility to offer this asset to WES, it is possible that we will recapture the initial and subsequent capital investments in the future, while continuing to benefit from operational improvements in the basin," added Meloy.

Anadarko has approximately 900,000 net acres in the DJ Basin, and the company expects to be running a total of nine operated rigs, including three horizontal rigs, in the basin by the end of March.

The transaction is expected to close by mid-year, subject to applicable regulatory approvals and other contractual conditions.

Tags: Anadarko Petroleum Corporation