PHOENIX, AZ, June 30, 2014 – Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that its oil and gas subsidiary, Freeport-McMoRan Oil & Gas (FM O&G), has completed the previously announced acquisition of certain of Apache Corporation's (Apache) (NYSE, Nasdaq: APA) interests in the Deepwater Gulf of Mexico (GOM).
Following the exercise of preferential purchase rights by other working interest owners in the Lucius
project, FM O&G acquired for $919 million, 51.2% of Apache's 11.7% working interest in the Lucius oil development project, 100% of Apache's 12.5% working interest in the Heidelberg oil development project and several exploration leases. Following closing and the interim redetermination of equity ownership by the co-owners in the Lucius field, FM O&G owns an approximate 25.1% working interest in Lucius.
The Deepwater GOM acquisition was funded with proceeds from the previously reported sale of FM
O&G's Eagle Ford Shale assets, which closed on June 20, 2014. The estimated combined after-tax net proceeds from these transactions approximate $1.8 billion. On June 23, 2014, FCX announced that it will redeem in July 2014 approximately $1.7 billion aggregate face amount of senior notes with an average annual interest rate of approximately 6.6%.