Apache Announces First Oil Production from Pyrenees Development

HOUSTON, March 1 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that its subsidiary, Apache PVG Pty Ltd, has commenced oil production from the Pyrenees development in production license WA-42-L in the Exmouth Basin offshore Western Australia. Production from the Crosby, Ravensworth and Stickle wells processed through the floating production, storage and offloading (FPSO) vessel at Pyrenees is expected to be brought on in phases, with approximately half the field ramping up from first oil and the other half over the next six months.

Apache earlier announced first oil production from Apache PVG's Van Gogh Field in production license WA-35-L in the Exmouth Basin. The first 350,000-barrel lifting of oil produced at Apache-operated Van Gogh, located in production license WA-35-L in the Exmouth Basin, is scheduled for the coming week. Apache PVG owns a 52.5-percent interest in the field with INPEX owning the remaining interest.

"We now have two oil fields on production in Australia that will make a significant contribution to Apache's projected growth in 2010," said Rod Eichler, co-chief operating officer and president – International. "Net production from Pyrenees and Van Gogh is projected to quadruple Apache's oil production in Australia.

"Pyrenees and Van Gogh are among a pipeline of projects that will add production from Apache's exploration program in Western Australia and other regions in coming years," Eichler said.

The Crosby, Ravensworth and Stickle oil fields were discovered in 2003 in water depths ranging from 555 to 820 feet approximately 27 miles (45 kilometers) off the coast of Exmouth, Western Australia. BHP Billiton Petroleum operates the Pyrenees development. A subsea gathering system will bring oil from 13 horizontal wells to an FPSO with production capacity of approximately 96,000 barrels of oil per day. Water injection is incorporated in the development to enhance oil recovery. The project has an estimated production life of 25 years.

Apache owns a 28.57-percent interest in the $1.7 billion Pyrenees development in production license WA-42-L. BHP Billiton owns the remaining interest.

Apache has a 31.501-percent interest in the part of the Ravensworth field located in production license WA-43-L. BHP Billiton Petroleum holds 39.999 percent and INPEX owns 28.5 percent. This part of the Pyrenees project will have its own wells and gathering system with oil production from the WA-43-L part scheduled to begin later in 2010.

Gas produced at the Pyrenees development will be reinjected into the reservoir of the nearby Macedon gas field, which is in front-end engineering and design with a final investment decision expected later in 2010. Apache owns a 28.57 percent interest in this development, also operated by BHP Billiton.

Apache plans to invest nearly $1 billion in Australia during 2010, funding exploration as well as a range of development projects which includes the Macedon, Reindeer and Julimar/Brunello discoveries.

Apache's Devil Creek domestic gas processing plant, scheduled for completion in 2011, will process gas from the offshore Reindeer Field and increase Western Australia's domestic natural gas production capacity by up to 20 percent.

Apache Corporation is an independent 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 and investor information, in addition to copies of all recent press releases, on its Web site, www.apachecorp.com.

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, on our Web site 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.

APA-AU

SOURCE Apache Corporation