Apache Corporation (APA) has reportedly agreed to purchase $7 billion worth of assets from BP (BP). The assets include all of BP's oil and gas facilities and land in the Permian Basin of West Texas and New Mexico and the Western Desert region in Egypt. Apache will gain control of much of BP's gas business in western Canada as well.

In all, Apache will acquire oil reserves of at least 385 million barrels.

"This is a rare opportunity to acquire legacy positions from a major oil company, with oil and gas production, acreage, infrastructure, seismic data, field studies, exploration prospects and other essential aspects of our business," said G. Steven Farris, Apache's chairman and chief executive officer, in a statement. "We seldom have an opportunity like this in one of our core areas let alone three. This is a step change that will add muscle, enabling Apache to add value for decades to come through our demonstrated exploitation capabilities and exploration drilling."

The effective date of the deal is July 1, 2010, with an expected closing date of July 30.

BP shares are up modestly in after-hours trading, while Apache shares are down.