Apache Completes First Horizontal Wells in Oil-Rich Hogshooter Segment of Granite Wash Play With Initial Production Rates Exceeding 2,000 Barrels Per Day

HOUSTON, Nov. 4, 2010 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that the first two horizontal wells to target the Hogshooter segment of the Granite Wash play in the Anadarko Basin each commenced production at rates exceeding 2,000 barrels of oil per day.

The Hogshooter wash is shallower, younger and more oil-prone than previous Granite Wash targets in western Oklahoma and the Texas Panhandle. The two wells were drilled more than 15 miles apart in Beckham County, Okla., near the east/west axis of the Granite Wash play. The distance between the wells points to meaningful potential in the Hogshooter segment across a broad area. Apache controls 200,000 gross acres in the Granite Wash play and leased nearly 30,000 net acres in 2010.

The Edler #1-5, located in Section 5 of Township 11N-20 W of Beckham County, commenced production at a daily rate of 2,050 barrels of oil and 3.7 million cubic feet (MMcf) of gas. The well was drilled to a vertical depth of approximately 11,360 feet with a 4,360-foot horizontal section before it was completed in eight stages. Apache owns an 82-percent interest in the well.

The Thetford #4-23, located in Section 23 of Township 11N-23W of Beckham County, initially produced 2,100 barrels of oil and 3.2 MMcf of gas per day. It was drilled to a vertical depth of approximately 10,900 feet with a 4,280-foot horizontal section and then completed in nine stages. Apache owns a 56-percent interest in the well.

After almost two months on production, each of the wells is averaging approximately 700 barrels of oil and 3.5 MMcf of gas per day.

Apache currently is operating nine horizontal rigs in the Granite Wash play and plans to drill a third horizontal Hogshooter well by year-end. For 2011, the company currently plans to add a tenth horizontal rig and drill more than 40 horizontal Granite Wash wells – including 10 in the oil-rich Hogshooter. Over the past year, Apache has completed 19 Granite Wash horizontal wells with current aggregate net production of 2,600 barrels of oil and 40 MMcf of gas per day.  Seven wells are awaiting completion.  

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates, investor information and all press releases on its website, www.apachecorp.com.

Forward-Looking Statements

This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements. We assume no duty to update these statements as of any future date. However, readers should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.

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SOURCE Apache Corporation