Second-quarter 2014 operations supplement

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Second-quarter 2014 operations supplement
Second Quarter 2014
EARNINGS RELEASE
OPERATIONS SUPPLEMENT
& Pro Forma Production Reconciliation
TABLE OF CONTENTS
Overview ............................................................................................................................................................................... 2
NORTH AMERICA .............................................................................................................................................................. 7
Permian......................................................................................................................................................................... 7
Central ........................................................................................................................................................................ 11
Gulf Coast ................................................................................................................................................................... 13
Canada ........................................................................................................................................................................ 15
Gulf of Mexico ............................................................................................................................................................ 18
INTERNATIONAL ............................................................................................................................................................. 19
Australia ...................................................................................................................................................................... 19
Egypt ........................................................................................................................................................................... 21
North Sea .................................................................................................................................................................... 24
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
NOTICE TO INVESTORS
This earnings release operations supplement contains certain "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and, whenever
possible, are identified by use of the words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and
similar references to future periods. Any matters that are not historical facts are forward-looking and, accordingly, involve
estimates, assumptions, risks and uncertainties, including, without limitation, our assumptions and estimates about the market
prices of oil, natural gas, NGLs and other products or services, our commodity hedging arrangements, the supply and demand for oil,
natural gas, NGLs and other products or services, production and reserve levels, drilling risks, the number of wells drilled, economic
and competitive conditions, the availability of capital resources, capital expenditure and other contractual obligations, and our
ability to complete, test and produce the wells identified in this supplement. Because such statements involve risks and
uncertainties, Apache’s actual results and performance may differ materially from the results expressed or implied by the forwardlooking statements contained in this supplement. Other important factors that could cause actual results to differ materially from
expected results are described in “Risk Factors” in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on
Form 10-Q and amendments thereto, available 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 readers are cautioned not to place undue reliance on forward looking
statements, which speak only as of the date hereof. Unless otherwise required by law, we assume no duty to update these
statements as of any future date.
Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their
filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache
may use certain terms in this earnings release operations supplement, such as “resources,” “potential resources,” “resource
potential,” “reserves potential,” and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with
the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success,
technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future
resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2013, 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.
Certain information may be provided in this supplement that includes financial measurements that are not required by, or presented
in accordance with, generally accepted accounting principles (GAAP), including these measures: adjusted earnings, pre-tax margin,
and cash from operations. These non-GAAP measures should not be considered as alternatives to GAAP measures, such as net
income or cash from operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly
titled measures used at other companies. Reconciliation to the most directly comparable GAAP financial measure has been provided
on our website at www.apachecorp.com/financialdata.
None of the information contained in this document has been audited by any independent auditor. This supplemental document is
prepared as a convenience for securities analysts and investors and may be useful as a reference tool. Apache intends to continue
to publish this supplement in conjunction with our quarterly earnings release, but may elect to modify the format or discontinue
publication at any time, without notice to securities analysts or investors.
1
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Overview
North American onshore liquids production grew 18 percent year-overyear and 3 percent sequentially on a pro forma basis led by strong results
in our Permian region. Total North American onshore liquids volumes
reached a record 201,400 Bbls/d.




Total worldwide production during the quarter averaged 636 thousand
barrels of oil equivalent per day (Mboe/d). Liquids production comprised
59 percent of the total, up from 58 percent in the previous quarter.
Pro forma second-quarter production averaged 550 Mboe/d compared to
a second-quarter 2013 average of 529 Mboe/d.
Apache averaged 116 rigs worldwide during the second quarter, 82 of
which were focused onshore in North America.
The company completed 440 gross wells during the quarter, 360 of which
were onshore in North America.
NORTH AMERICAN ONSHORE
KEY STATS



Second-Quarter 2014
Q2 Production:
351,302 Boe/d
Q2 Wells:
360 gross, 262 net
Q2 Rigs:
Avg 82 rigs
GLOBAL KEY STATS



Second-Quarter 2014
Q2 Production:
635,814 Boe/d
Q2 Wells:
440 gross, 330 net
Q2 Rigs:
Avg 116 rigs
APACHE WORLDWIDE OPERATIONS
Note: Pro forma production rates and growth percentages in this report are adjusted to exclude volumes from divestitures, noncontrolling interest and tax barrels in Egypt. The
number of wells reported as drilled and/or completed throughout this report could be subject to reclassification that may cause adjustments to reported amounts in future
periods. The number of wells reported is subject to SEC standards and therefore, along with other SEC guidelines, includes completed wells only.
2
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
UPDATED PRO FORMA 2013 PRODUCTION BRIDGE
532 Mboe/d
800
761
71
43
700
41
36
600
33
537
5
532
500
400
300
200
100
0
2013 As
Reported
GOM Shelf
Argentina
Egypt Tax
Barrels
Noncontrolling Canada Sales Initial 2013 Pro South Texas
Interest
Forma
Sale
Updated 2013
Pro Forma
Note: At Apache’s February 2014 Investor Day, we provided a reconciliation from 2013 reported production volumes of 761 Mboe/d to pro forma production volumes of 537
Mboe/d which were adjusted to exclude volumes from GOM Shelf, Argentina and Canada divestitures and noncontrolling interest and tax barrels in Egypt. We have since disclosed
additional divestitures in South Texas and are therefore providing an updated 2013 pro forma production volume of 532 Mboe/d for the comparability of results. 2014 production
guidance is based off of pro forma production volumes.
3
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
700
636
40
PRO FORMA
SECOND-QUARTER PRODUCTION BRIDGE
550 Mboe/d
583 Mboe/d
37
600
5
3
550
Canada Sales
South Texas Sale
2Q 2014
Pro Forma
500
400
300
200
100
0
As Reported
Egypt Tax Barrels
Noncontrolling
Interest
PRO FORMA SECOND-QUARTER PRODUCTION BY REGION
550 Mboe/d
583 Mboe/d
Australia
North Sea
PRO FORMA SECOND-QUARTER PRODUCTION BY PRODUCT
550 Mboe/d
9%
13%
Central
16%
Egypt
North
American
Liquids
International
Liquids
22%
38%
14%
N.A.
Onshore
62%
Gulf of
Mexico
14%
2%
13%
International
Gas
28%
Canada
5%
26%
Permian
Gulf Coast
North American Onshore
North American
Gas
International & Offshore
4
Liquids
Natural Gas
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
PRO FORMA
NORTH AMERICAN ONSHORE PRODUCTION: 2Q 2013 VS 2Q 2014
Liquids Production (Mbbls/d)
Total Production (Mboe/d)
350
350
300
300
250
250
18%
200
150
100
15%
19%
118
Liquids
60
NGLs
150
141
Oil
50
100
50
0
% Liquids
9%
200
170
52
201
343
313
0
Q2 2013
Q2 2014
54%
59%
Q2 2013
Q2 2014
PRO FORMA
WORLDWIDE PRODUCTION (Mboe/d)
570
560
550
550
544
540
532
530
529
520
510
500
PF 2Q 2013
Updated PF 2013
PF 1Q 2014
5
PF 2Q 2014
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
REPORTED
SECOND-QUARTER PRODUCTION BY REGION
636 Mboe/d
North Sea
11%
Australia
8%
Central
14%
Egypt
24%
N.A.
Onshore
55%
24%
2%
Gulf of
Mexico
12%
Canada
5%
Gulf Coast
REPORTED
SECOND-QUARTER PRODUCTION BY PRODUCT
636 Mboe/d
SECOND-QUARTER REVENUE BY PRODUCT
$3.7 Billion
International
Liquids
$1.7 Bn
North
American
Liquids
International
Liquids
Permian
North
American
Liquids
$1.5 Bn
26%
45%
33%
39%
17%
International
Gas
24%
6%
North American
Gas
North American Onshore
International
Gas
$0.2 Bn
International & Offshore
Liquids
10%
North American
Gas
$0.3 Bn
Natural Gas
6
Note: Reported volumes are consistent with production included for purposes of GAAP financial reporting and therefore include noncontrolling interest and tax barrels in Egypt.
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
NORTH AMERICA
Permian



Second-quarter 2014 production in the Permian averaged a record
PERMIAN KEY STATS
155,244 barrels of oil equivalent per day (Boe/d) (77 percent liquids),
Second-Quarter 2014
up 4 percent over the previous quarter, and up 26 percent over the

Q2 Production:
155,244 Boe/d
second quarter of 2013.

Q2 Wells:
207 gross, 152 net

Q2
Rigs:
Avg 37 rigs
The Barnhart (Irion County, Wolfcamp), Pecos Bend (Loving County,
Bones Springs), and Cedar Lake (Eddy County, Yeso) areas lead the
region’s production growth, while Deadwood and Barnhart in the Midland Basin remained the top two areas in
terms of production contribution.
The Permian region averaged 37 operated drilling rigs, with horizontal rigs increasing to 24 and vertical rigs
decreasing to 13. The region drilled (TD’d) 164 gross operated wells during the quarter including 74 horizontal and
90 vertical.*
APACHE PERMIAN REGION
ACREAGE AND KEY PLAYS
* This is different from the 207 wells reported in the Key Stats due to differences in classification.
7
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued)
PERMIAN WELL HIGHLIGHTS
Second-Quarter 2014
PLAY/TARGET
COUNTY, ST
TVD
LATERAL
IP (Peak 24-Hour)
IP (30-Day)
SRH 1335 HU
Reagan, TX
7,700’
5,800’
1,184 Boe/d
N/A
SRH 1336 HM
Reagan, TX
8,000’
5,800’
812 Boe/d
N/A
Cline Shale
Augusta Barrow #1418H
Ector, TX
9,900’
4,460’
1,268 Boe/d
518 Boe/d
Penn
George D Hogg #8H
Winkler, TX
8,696’
5,577’
1,158 Boe/d
1,162 Boe/d
Robin 8 #103H
Reeves, TX
10,583’
4,567’
1,192 Boe/d
912 Boe/d
Waha #802 HL
Reeves, TX
10,612’
4,892’
971 Boe/d
N/A
Chaparral 89 #103H
Loving, TX
10,897’
4,449’
1,473 Boe/d
1,321 Boe/d
Spraberry
Augusta Barrow #2309
Ector, TX
11,410’
VERTICAL
583 Boe/d
374 Boe/d
Yeso
Tony Federal #56
Eddy, NM
6,500’
VERTICAL
789 Boe/d
348 Boe/d
Wolfcamp
King 59-1
Crane, TX
8,045’
VERTICAL
354 Boe/d
N/A
Wolfcamp Shale
Bone Springs
WELL NAME
8
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued)
WOLFCAMP SHALE



During the second quarter, Apache drilled 37 wells in the Wolfcamp Shale in
Irion, Reagan, and Upton County.
Irion County:
 The Barnhart area of Irion County remained extremely active ending the
second quarter with seven rigs. The activity focused on drilling 12 Upper
and 7 Middle Wolfcamp wells, four of which were drilled to two-mile
lateral lengths and the remaining 15 wells were drilled to 1.5-mile
lateral lengths.
Reagan County (Southern Midland Basin):
 During the quarter, four wells were drilled at Scottish Rite Hospital (SRH)
with two drilling rigs. Two recently completed wells, the SRH 1335HU and
1336HM, produced 24-hour initial production (IP) rates of 1,184 Boe/d
and 812 Boe/d, respectively.
MIDLAND VERTICAL


The southern end of the Deadwood core continued to provide excellent
Wolfwood results due to a combination of Strawn and Wolfcamp potential.
The Midland vertical program in the Permian continues to provide strong
rates of return with select wells exhibiting 30-day average production rates
in excess of 300 Boe/d.
CLINE SHALE


We continued our active program in the Deadwood field in Glasscock
County (Midland Basin) drilling nine Lower Cline horizontal wells in the
second quarter.
Apache is also testing new areas including eastern Ector County at the
Augusta Barrow field (Central Basin Platform) with very strong initial results.
The Augusta Barrow #1418H recently generated a peak 24-hour IP of 1,268
Boe/d.
9
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued)
CENTRAL BASIN PLATFORM (CBP)



Horizontal activity during the second quarter was focused in Andrews
County on the Super Bar area where five horizontal wells were drilled
targeting the upper Wichita Albany formation.
Additional activity centered on the North Monahans horizontal
development in Winkler County.
Apache is also testing Grayburg potential in Crane County drilling five
horizontal wells during the quarter.
NORTHWEST SHELF - YESO



Apache ran two rigs in the Yeso play during the second quarter and spud
a total of 20 wells, four of which were horizontal and the other 16
vertical.
16 wells were brought onto production adding 1,578 Bo/d and 3,351
Mcf/d to the field (2,137 Boe/d).
The 10 horizontal wells completed last year in the Cedar Lake area are
still among the best Yeso wells producing approximately 3,700 Bo/d due
to lift upgrades installed during the second quarter.
DELAWARE BASIN

Three rigs continued to drill in Pecos Bend and Waha during the second
nd
quarter. In Pecos Bend, seven wells were spud: two in the 2 Bone
rd
Springs, four in the 3 Bone Springs and one in the Wolfcamp
formations.
Waha
10
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central



Second-quarter 2014 production in the Central Region was 89,883
Boe/d. Production growth was lower than expected because fewer
wells were brought online than had been planned.
Liquids now constitute 51 percent of production (oil is 24 percent), up
from 49 percent in the second quarter of 2013.
For the quarter, the Central Region averaged 33 drilling rigs and drilled
98 gross wells versus a planned 108 gross wells.
CENTRAL KEY STATS



Second-Quarter 2014
Q2 Production:
89,883 Boe/d
Q2 Wells:
98 gross, 66 net
Q2 Rigs:
Avg 33 rigs
APACHE CENTRAL REGION
ACREAGE AND KEY PLAYS
11
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central (Continued)
CANYON LIME/CANYON WASH




Evaluation of the extensive acreage position is underway as Apache has already drilled two horizontal wells
exhibiting promising performance.
Apache’s first horizontal well in the Canyon Lime formation was drilled in the first quarter. The Bivins East 41-1H,
was drilled to a vertical depth of roughly 9,500 feet with a one mile lateral and successfully tested the play.
A follow-up Canyon Lime well, the Bivins East 94-1H, was drilled south of the Bivins East 41-1H in the second
quarter and produced an average 30-day rate of 1,718 Boe/d.
The Bivins-LIT 110 1H was also drilled and reached total depth of 15,275 feet. Completion of the well is underway.
TONKAWA


For the quarter, Apache drilled 11 Tonkawa wells and completed 17 wells with an average 30-day rate of 250 Bo/d
and 500 Mcf/d.
Apache continues to lead the industry in low-cost horizontal Tonkawa wells with typical completed well costs
between $3.9 and $4.5 million.
CENTRAL WELL HIGHLIGHTS
Second-Quarter 2014
PLAY/TARGET
WELL NAME
COUNTY, ST
TVD
Lateral
IP (30-Day)
Granite Wash
Moore, R. #2-1H
Wheeler, TX
13,300’
4,758’
756 Boe/d
Tonkawa
Currier 3-18H
Roger Mills, OK
8,937’
4,836’
769 Boe/d
Canyon Lime
Bivins East 94 #1H
Potter, TX
9,099’
4,472’
1,718 Boe/d
Des Moines
Deal 5-11-21 #1H
Beckham, OK
12,940’
4,500’
779 Boe/d
Cleveland
Fiskin 5 15-26 2H
Roger Mills, OK
10,083’
4,450’
1,571 Boe/d
12
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf Coast


Second-quarter 2014 reported production averaged 29,483 Boe/d, down
2 percent from the first quarter of 2014 due to planned downtime at
Belle Isle facility and a small asset sale of approximately 3,000 Boe/d on
average for the quarter in South Texas. When adjusting for asset
divestitures, production was flat sequentially.
For the quarter, Apache operated five rigs in the East Texas Eagle Ford
and two rigs in South Louisiana for a total of seven operated drilling rigs
while completing a total of 24 gross (19 net) wells.
APACHE GULF COAST REGION
ACREAGE AND KEY PLAYS
13
GULF COAST KEY STATS



Second-Quarter 2014
Q2 Production:
29,483 Boe/d
Q2 Wells:
24 gross, 19 net
Q2 Rigs:
Avg 7 rigs
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf Coast (Continued)
EAST TEXAS EAGLE FORD




During the quarter, Apache continued its drilling program in its emerging East Texas Eagle Ford play in Brazos and
Burleson Counties.
Apache is utilizing pads for greater efficiency and began drilling a total of 26 wells during the quarter. One well was
completed and brought online during the quarter, with the rest expected to come on in the second half of the
year. The timing of the production impact from wells drilled during the second quarter will not be evident until all
wells are completed and come online.
Early tests on third quarter completed wells such as the Reveille 10H and Reveille 14H had 24-hour initial
production rates of 906 Boe/d and 1,220 Boe/d, respectively.
Apache’s commitment to the East Texas Eagle Ford area continues to increase with the rig count during the
quarter approaching a total of eight rigs.
GULF COAST WELL HIGHLIGHTS
Second-Quarter 2014
PLAY/TARGET
Eagle Ford
WELL NAME
Reveille #8H
14
TMD
Lateral Length
24-Hour Peak Rate
17,775’
7,174’
987 Boe/d
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada




Second-quarter 2014 production in Canada, which includes Kitimat
CANADA KEY STATS*
upstream production, was 76,692 Boe/d.
Second-Quarter 2014
Total production was down 13 percent from the first-quarter 2014

Q2 Production:
76,692 Boe/d
due to the closing of the previously announced sale of Ojay, Noel and

Q2 Wells:
31 gross, 26 net

Q2 Rigs:
Avg 5 rigs
Wapiti areas in Alberta and British Columbia on April 30, 2014 and
third-party downtime of approximately 3,000 Boe/d. The production
associated with the downtime is now online.
These divestitures were primarily dry gas-producing properties comprising 622,600 gross acres (328,400 net acres).
In the Wapiti area, Apache retained 100 percent of its working interest in horizons below the Cretaceous including
rights to the liquids-rich Montney and other deeper horizons. During 2013, production from the fields divested
averaged 101 MMcf/d of natural gas and 1,500 Bbls/d of liquid hydrocarbons.
During the quarter, the region averaged one rig (excluding Kitimat), down from eight in the previous quarter due
to the planned spring break-up season. Apache anticipates increasing the rig count to an average of seven rigs in
the third quarter.
APACHE CANADA REGION
ACREAGE AND KEY ASSETS
*Includes Kitimat Upstream.
15
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada (Continued)
CANADA WELL HIGHLIGHTS
Second-Quarter 2014
PLAY/TARGET
WELL NAME
TVD
Lateral Length
30-Day IP (% Gas)
Kaybob - Bluesky
00/04-34-059-19W5/00
7,054’
4,219’
817 Boe/d (73%)
House Mountain - Beaverhill
00/09-16-069-09W5/00
7,161’
4,452’
309 Boe/d (7%)
00/16-23-033-04W5/00
6,819’
4,438’
318 Boe/d (13%)*
00/02-14-033-04W5/00
6,826’
3,844’
317 Boe/d (12%)*
West 5 - Cardium
Previously Unreported Wells Drilled in First-Quarter 2014
Kaybob Duvernay
Wapiti Montney
00/02-28-062-20W5
10,840’
3,927’
1,963 Boe/d (44%)*
00/02-08-062-20W5
11,125’
4,219’
713 Boe/d (54%)**
00/13-18-067-07W6
10,134’
4,974’
926 Boe/d (67%)
* Less than 30-day rate. Well 00/02-28-062-20W5 does not have a representative 30-day IP rate at this time due to facility constraints.
** Only 60% of the lateral well bore was treated during the hydraulic fracture completion process due to service company performance issues.
16
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada (Continued)
KITIMAT UPSTREAM (50 PERCENT APA)



During the second quarter, Kitimat Upstream gross production in the Horn River and Liard Basins averaged 140
MMcf/d (55 MMcf/d net to Apache’s interest), down 5 percent from first-quarter 2014 due mainly to natural field
declines.
During the quarter, two vertical tenure wells reached total depth, retaining 40,861 gross acres (18,480 net acres).
Operations concluded on the 2013/2014 winter 3D seismic programs in early second quarter with 515-squaremiles acquired.
At 54 ̊ ̊ north, Kitimat is
one of North America’s
closest ports to Asian
markets.
Liard
Kitimat-Tokyo
3,988 nm, 10 days
Qatar-Tokyo
6,500 nm, 16 days
0
100
KM
17
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf of Mexico



Second-quarter 2014 production in the Gulf of Mexico averaged
GULF OF MEXICO
11,908 Boe/d, up 11 percent from first-quarter 2014 with
Second-Quarter 2014
natural declines being offset by a full quarter of production at

Q2 Production:
11,908 Boe/d
Bushwood.

Q2 Wells:
3 gross, 1 net

Q2 Rigs:
Avg 1 rig
Apache averaged one rig during the quarter and drilled the
Bimini prospect but did not encounter commercial quantities of
hydrocarbons.
On May 8, 2014, Apache announced the sale of the Lucius and Heidelberg development projects to FreeportMcMoRan Copper & Gold. The deal closed on June 30, 2014.
APACHE GULF OF MEXICO REGION
ACREAGE POSITION
Bushwood
18
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
INTERNATIONAL
Australia


Second-quarter 2014 production averaged 49,633 Boe/d, down 6
percent from first quarter 2014. New production from the BHP
Billiton Petroleum-operated Moondyne project was offset by
natural field declines at the Pyrenees Venture FPSO.
During the quarter, the region operated two semi-submersible
drilling rigs and drilled the first tri-lateral development well at
Coniston and a delineation well in the greater Julimar area.
AUSTRALIA KEY STATS



Second-Quarter 2014
Q2 Production:
49,633 Boe/d
Q2 Wells:
2 gross, 1 net
Q2 Rigs:
Avg 2 rigs
APACHE AUSTRALIA REGION
ACREAGE AND KEY PROJECTS
19
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Australia (Continued)
BALNAVES (65 PERCENT APA)

The Armada Claire FPSO left the Singapore shipyard and arrived in the field. Final hook-up and commissioning
activities are now underway in preparation for first oil production.
CONISTON DEVELOPMENT AND NINGALOO VISION UPGRADE PROJECT (52.5 PERCENT APA)



Development drilling on the Coniston development continued during the second quarter with the completion of its
first tri-lateral well development. Apache has now successfully drilled seven of the 17 well laterals.
Maintenance and upgrade works continued during the quarter on the Ningaloo Vision FPSO in the shipyard drydock.
Removal and replacement of the subsea flowlines to increase capacity for Coniston took place. Offshore
installation of the last flowline replacement is now underway and will complete the offshore Coniston facilities
development work.
JULIMAR (65 PERCENT APA) / WHEATSTONE LNG (13 PERCENT APA)


Wheatstone LNG:
 Nearly 38 percent complete. Platform fabrication continued with all topside deck blocks and steel gravity
substructure blocks erected.
 Chevron completed installation of the 44-inch main trunkline from shore to platform location. The pipelay was
completed with excellent safety performance and productivity.
 At the LNG Plant site, the first LNG tank foundation was completed. A key downstream milestone was
achieved with the material offloading facility (MOF) completed and ready to receive the first module.
Julimar:
 Nearly 60 percent complete and on track to meet the year-end 2016 forecast for first LNG sales from
Wheatstone.
 Apache completed drilling operations on intermediate hole sections for five development wells. All five subsea
trees were successfully installed ready for final drilling and completion in 2015. Mobilization activities
commenced for installation of the two Julimar 18-inch pipelines.
MOONDYNE (28.57 PERCENT APA)

Moondyne subsea installation work to connect its two production and one water injection to the Pyrenees Venture
FPSO was completed and first oil was achieved in the second quarter.
NORTHERN CARNARVON BASIN

Apache entered an agreement with Karoon Gas Australia to farm in to WA-482-P in the Northern Carnarvon Basin.
The permit offers exploration opportunities for large potential targets in a proven petroleum system.
20
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt








Second-quarter gross liquids production was 199,767 Bo/d and
EGYPT KEY STATS*
gross gas production was 908 MMcf/d, for a total of 351,059
Second-Quarter 2014
Boe/d.

Q2 Gross Production:
351,059 Boe/d
Liquids:
199,767 Bo/d
Apache averaged 26 rigs in the second quarter and drilled a
Gas:
907,752 Mcf/d
total of 67 gross (59 net) wells.

Q2 Wells:
67 gross, 59 net
Apache continued its active exploration program and appraisal

Q2 Rigs:
Avg 26 rigs
drilling campaign in Egypt. Khalda remains on pace to drill 37
exploration wells for the year with 14 reaching total depth and
eight classified as discoveries with logged pay in the quarter.
Notable tests in the second quarter included the Ras Kanayes-10X well located in the Ras Kanayes B Concession.
The well tested the Safa and AEB5/6 resevoirs and encountered pay in the AEB-4, Masajid, Zahra, Upper Safa and
Lower Safa formations. The post-frac drill stem test in the Upper Safa tested 872 Bo/d and 7 MMcf/d on a 32/64inch choke.
The Pinot-3HX, a horizontal exploration well, is pursuing Bahariya oil reserves in the large Pinot-Nour structure.
During the second quarter, the well was drilled vertically 6,900 feet and then horizontally 3,300 feet through a 40foot window in the Upper Bahariya formation. The time to drill required only 20 days and costs came in under AFE.
A multiple-staged fracture stimulation program is scheduled to be completed in the third quarter.
As part of the ongoing horizontal drilling program, during the quarter the region spud another Upper Bahariya
horizontal well, the Cyngus 23H. The Cyngus field was discovered in 2007 but deemed to be uneconomic as the
vertical well performance was poor. A large area of potential reserves remains and this well represents a trial to
improve economics of the play utilizing horizontal drilling and multi-stage hydraulic fracturing technology.
Development drilling success during the second quarter included the North Razak #12 and WKAL-I7ST1 wells
drilled in the Alamein and Faghur Basins, respectively. The North Razak #12 well encountered unswept Alamein
reservoir and after acid stimulation initially flowed 3,500 Bo/d, while the WKAL-I7ST1 initially tested at 3,550 Bo/d
and 11.5 MMcf/d furthering development of the Jurassic and Safa projects.
Following the significant field discovery at Herunefer-1X during the first quarter in the Khalda Offset (East)
Concession, Apache was granted a new development lease covering 4,450 acres in this area.
*Includes noncontrolling interest.
21
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt (Continued)
EGYPT WELL HIGHLIGHTS
Second-Quarter 2014
PLAY/TARGET
WELL NAME
IP (30-Day)
Safa
WKAL I7
1,817 Boe/d
Upper Safa
Scorpion 1X
7,747 Boe/d
Hydra 1
5,897 Boe/d
Siwa 3R2
920 Bo/d
AEB 3C
WKAL A6
3,240 Bo/d
AEB 3D
Buchis W3
2,970 Bo/d
ALM DOL
NRZK 12
1,150 Bo/d
ARG
MRZK 104
PLZC
905 Bo/d
APACHE EGYPT REGION
ACREAGE AND KEY BASINS
22
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt (Continued)
EGYPT PRODUCTION DETAIL
2Q 2014
Liquids
(Bbls/d)
Gas
(Mcf/d)
199,767
907,752
Apache Share
59,724
Noncontrolling Interest
Total Net Production With Tax
1Q 2014
Boe/d
Liquids
(Bbls/d)
Gas
(Mcf/d)
Boe/d
351,059
199,268
921,440
352,841
245,285
100,606
59,182
252,558
101,275
29,803
122,665
50,247
29,144
124,799
49,944
89,527
367,950
150,853
88,326
377,357
151,219
44.8%
40.5%
43.0%
44.3%
41.0%
42.9%
24,183
95,115
40,036
22,630
89,805
37,598
Apache Share
43,573
181,791
73,871
44,039
192,890
76,188
Noncontrolling Interest
21,771
91,044
36,946
21,657
94,662
37,434
65,344
272,835
110,817
65,696
287,552
113,621
32.7%
30.1%
31.6%
33.0%
31.2%
32.2%
Gross Production
Net Production With Tax:
% of Gross
Total Tax Barrels
Net Production Without Tax:
Total Net Production Without Tax
% of Gross
23
SECOND QUARTER 2014
EARNINGS RELEASE OPERATIONS SUPPLEMENT
North Sea





Second-quarter 2014 production in the North Sea was 72,118 Boe/d,
NORTH SEA KEY STATS
up 7 percent from the first quarter due to a combination of
Second-Quarter 2014
production efficiency and drilling success.

Q2 Production:
72,118 Boe/d

Q2 Wells:
8 gross, 7 net
During the second quarter, the region operated an average of five

Q2
Rigs:
Avg
5 rigs
drilling rigs and drilled eight wells.
From the Beryl Bravo Platform, the BDR development well drilled
into the East Flank, which intersected 268 feet of vertical depth net pay and achieved a 30-day IP of 4,500 Boe/d.
From the Forties Alpha Platform, Maule M6 development well was drilled to target an unswept oil accumulation
based on the 2013 Forties 4D seismic and found 21 feet true vertical depth net oil pay. The well came online in
June with a 30-day IP of 5,105 Bo/d.
From the Forties Echo Platform, the Rowan Gorilla-7 successfully drilled the T268 horizontal completion hole and
encountered 230 feet net pay along the wellbore with a 30-day IP of 2,367 Bo/d.
NORTH SEA WELL HIGHLIGHTS
Second-Quarter 2014
PLAY/TARGET
WELL NAME
IP (30-Day)
Beryl
B76
4,500 Boe/d
Forties
T268
2,367 Bo/d
Forties
T267
1,661 Bo/d
Maule
M6
5,105 Bo/d
APACHE NORTH SEA REGION
ACREAGE AND KEY PROJECTS
24