Aug 19 (Reuters) - APA Corp ( APA ) is exploring the

sale of oil and gas drilling properties spread across parts of

the Permian basin of Texas and New Mexico, in a deal that could

be valued at about $1 billion, people familiar with the matter

told Reuters.

APA, which owns the properties through its Apache

subsidiary, is working with investment bankers at RBC Richardson

Barr and Truist Securities on the sale process, the sources

said, requesting anonymity as the discussions are confidential.

APA's move to offload the drilling sites comes as the

Houston-based company looks to revamp its operations to focus on

its shale operations, while attempting to reduce its

$6.7-billion debt pile in part through asset sales.

The drilling assets are in different sub-sections of the

Permian Basin, namely the Northwest Shelf, the Northern Shelf,

and the Central Basin Platform in New Mexico and Texas. The

sites produce more than 22,000 barrels of oil equivalent per day

combined, of which roughly 60% is oil, the sources said.

An Apache spokesperson said the company actively manages its

portfolio, but declined to comment on any specific transactions.

"You've seen us do multiple deals recently, including the

Callon acquisition this year, and targeted divestments of

non-core properties," said Patrick Cassidy, director of

corporate communications for Apache.

RBC and Truist declined comment.

The U.S. oil and gas industry is in the midst of a

dealmaking boom, as large energy producers have splurged on

acquisitions to gain scale and snap up prime drilling sites.

APA has said it wants to pay down the $2 billion of debt

that it assumed as part of its acquisition of Callon Petroleum

within the next three years. Earlier this year, APA sold some

non-core assets in the Permian and Eagle Ford basins for nearly

$700 million.