Apache Completes Acquisition of Devon's Gulf of Mexico Shelf Assets

$1.05 billion transaction brings production of 19,000 equivalent barrels per day, drilling upside

Jun 10, 2010, 08:45 ET from Apache Corporation

HOUSTON, June 10 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq: APA) said today that it has completed its previously announced acquisition of Devon Energy Corporation's oil and gas assets in the shallow waters of the Gulf of Mexico Shelf for $1.05 billion. Apache estimated net proved and probable reserves of 83 million barrels of oil equivalent at year-end 2009.

The properties are projected to produce 9,500 barrels of liquid hydrocarbons and 55 million cubic feet of gas per day (net) after closing – the same balance of liquids and natural gas in Apache's current worldwide production. About half of the estimated proved reserves of 41 million barrels equivalent are oil and natural gas liquids.

The acquired assets comprise 477,000 net acres across approximately 150 blocks. Virtually all of the production is located in fields in waters less than 500 feet deep.

Seven major field areas hold 90 percent of the proved reserves. Apache will operate 75 percent of the production. Based on initial evaluation, Apache has identified 79 recompletion opportunities and 26 drilling prospects across the acquired assets.

Additional information about this transaction is posted on Apache's Web site, www.apachecorp.com, along with other announcements, updates, investor information and copies of all press releases.

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.

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.

Effective January 1, 2010, the United States Securities and Exchange Commission (SEC) now permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in Apache's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.

APA-USG

SOURCE Apache Corporation



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