Third-quarter 2013 operations supplement

Transcription

Note: Updated at 4:45 PM (CT) on November 25, 2013.
2013 3rd Quarter
EARNINGS RELEASE
OPERATIONS SUPPLEMENT
TABLE OF CONTENTS
Overview ............................................................................................................................................................................... 2
NORTH AMERICA .............................................................................................................................................................. 6
Permian......................................................................................................................................................................... 6
Central .......................................................................................................................................................................... 9
Gulf Coast Onshore ..................................................................................................................................................... 12
Gulf of Mexico Shelf.................................................................................................................................................... 14
Gulf of Mexico Deepwater .......................................................................................................................................... 15
Canada ........................................................................................................................................................................ 16
INTERNATIONAL ............................................................................................................................................................. 19
Egypt ........................................................................................................................................................................... 19
Australia ...................................................................................................................................................................... 22
North Sea .................................................................................................................................................................... 24
Argentina .................................................................................................................................................................... 25
APACHE THIRD-QUARTER 2013 EARNINGS RELEASE
NOTICE TO INVESTORS
This 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 forward-looking 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 operational update 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, 2012, 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 provided in this supplement 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.
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
Overview
North America onshore liquids production grew 8 percent over the second
quarter 2013 and by 49,000 Bbls/d or, 35 percent, over the third quarter
2012






Apache averaged 125 rigs worldwide during the third quarter,
GLOBAL KEY STATS*
67 percent of which were onshore North America.
Third-Quarter 2013
The company completed 389 gross wells during the quarter, 85

Q3 Production:
784,331 Boe/d
percent of which were onshore North America.

Q3
Wells:
389 wells, 278 net
North American onshore regions, which include Permian,

Q3 Operated Rigs:
Avg 125 rigs
Central, Gulf Coast Onshore and Canada, collectively grew
liquids production 8 percent over the second quarter of 2013
to 188 Mbbls/d.
The Permian and Central regions were the main drivers of
NA ONSHORE KEY STATS
North American onshore liquids growth.
Third-Quarter 2013
 These two regions drilled 299 gross wells, or 91 percent of

Q3 Production:
372,080 Boe/d
the total wells drilled in North America and 77 percent of

Q3 Wells:
329 wells, 227 net
the wells drilled globally.

Q3 Operated Rigs:
Avg 84 rigs
 Permian and Central combined grew liquids production
12.6 Mbbls/d over the second quarter of 2013, or 9 percent, to over 149 Mbbls/d, which represented 35
percent of total worldwide liquids production.
Combined total production from the Permian and Central regions was 226 Mboe/d, representing 29 percent of
total company production.
Total worldwide net daily production of oil, natural gas, and natural gas liquids averaged 784 Mboe/d in the third
quarter with liquids production comprising 54 percent of the total.
APACHE WORLDWIDE OPERATIONS
2
* The number of wells reported as drilled and/or completed could be subject to reclassification which 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.
THIRD-QUARTER PRODUCTION BY REGION
784 Mboe/d
Australia
Argentina
7%
North Sea
5%
9%
Central
12%
19%
Egypt
N.A.
Onshore
47%
17% Permian
GOM DW
1%
4%
12%
GOM Shelf
GC Onshore
14%
Canada
THIRD-QUARTER PRODUCTION BY PRODUCT
784 Mboe/d
THIRD-QUARTER REVENUE BY PRODUCT
$4.4 Billion
International
Liquids
$1.8 Bn
North
American
Liquids
International
Liquids
North
American
Liquids
$1.9 Bn
31%
23%
40%
44%
17%
29%
International
Gas
6%
North American
Gas
North America Onshore
International
Gas
$0.3 Bn
International & Offshore
3
Liquids
10%
North American
Gas
$0.4 Bn
Natural Gas
30%
19%
21%
29%
ACTUAL 2009 VERSUS PRO FORMA 3Q 2013 PRODUCTION COMPARISON*
ACTUAL 2009
583 Mboe/d
Australia
7%
PRO FORMA THIRD-QUARTER 2013
625 Mboe/d
Australia
Argentina
8%
9%
Central
6%
North Sea
Argentina
7%
North Sea
11%
Central
11%
15%
9% Permian
GC
3% Onshore
Egypt
26%
Egypt
N.A.
Onshore
32%
N.A.
Onshore
56%
16%
13%
21%
Canada
1%
Permian
GOM DW
15%
17%
Canada
GOM Shelf
ACTUAL 2009 PRODUCTION BY PRODUCT
583 Mboe/d
International
Liquids
North
American
Liquids
International
Liquids
24%
19%
31%
18%
21%
International
Gas
GC Onshore
PRO FORMA THIRD-QUARTER 2013 PRODUCTION BY PRODUCT
625 Mboe/d
North
American
Liquids
30%
5%
29%
27%
International
Gas
North American
Gas
North America Onshore
North American
Gas
International & Offshore
Liquids
Natural Gas
*Pro forma represents third-quarter volumes less divested volumes from GOM Shelf, Canada and Egypt (once completed).
4
CENTRAL AND PERMIAN PRODUCTION
232
636
725
333
139
618
Total Production (Mboe/d)
240
240
226
23%
220
200
Liquids Production (Mbbls/d)
220
200
184
180
180
160
18%
132
Permian
140
120
120
100
80
80
60
31%
107
72
28%
Central
40
69%
49
NGLs
100
Oil
29
60
94
20
78
20
0
% Liquids
Liquids
39%
140
112
100
40
149
160
0
3Q 2012
3Q 2013
58%
66%
3Q 2012
5
3Q 2013
NORTH AMERICA
Permian




Third-quarter 2013 production in the Permian averaged a record 131,665
Boe/d (76 percent liquids), increasing 18 percent over the third quarter of
PERMIAN KEY STATS
Third-Quarter 2013
2012.
Production was affected by unplanned facility downtime resulting in

Q3 Production:
131,665 Boe/d

Q3 Wells:
208 wells, 155 net
deferred production of approximately 2,814 Boe/d.

Q3 Operated Rigs:
Avg 45 rigs
For the quarter, the Permian averaged 45 drilling rigs, spud 240 gross wells
(of which 66 were horizontal) and completed 208 gross (155 net) wells.
Looking into the fourth quarter of 2013, the region expects to maintain an active rig count of 44 rigs, with
approximately 23 drilling horizontal wells.
APACHE PERMIAN REGION
ACREAGE AND KEY PLAYS
6
Permian (Continued)
WOLFCAMP SHALE



Apache has an estimated 450,000 gross acres (345,000 net) prospective for Wolfcamp Shale with an estimated 347
MMboe of resource potential from 971 identified drilling locations.
The Barnhart area was extremely active during the third quarter, with six rigs drilling 20 Middle and Upper
Wolfcamp laterals. By the end of the third quarter, the region had drilled 56 wells with plans to spud 20 additional
wells in the fourth quarter. To handle this growing production from the region, a new gas delivery point has been
added to the Barnhart area.
In addition to the six rigs drilling horizontal wells in the Barnhart area of Irion county, Apache also had one rig in
Upton county and one in Reagan county drilling Upper and Middle Wolfcamp Shale wells with encouraging results.
CLINE SHALE



Apache has an estimated 650,000 gross acres (520,000 net) prospective for Cline Shale development with an
estimated 642 MMboe of resource potential from 2,300 identified drilling locations.
Three rigs drilled 12 Lower Cline wells during the quarter.
Fewer wells per section, more stages per frac and 3D seismic inversion interpretations have all helped to increase
the overall production of these wells; ongoing evaluation of these parameters will further optimize the Lower Cline
horizontal program.
MIDLAND BASIN VERTICAL





Apache has an estimated 1.1 million gross acres (625,000 net) in the Midland Basin vertical play area with an
estimated 1.7 Bboe of resource potential from over 17,800 identified drilling locations.
During the third quarter, Apache continued to focus on building inventory in the vertical Fusselman play, testing
Fusselman field extensions in new structures.
In addition, the region continued to highgrade Wolfwood locations and test 20-acre infill wells.
During the third quarter, three notable Fusselman wells averaged approximately 340 Boe/d (76 percent oil) and a
notable Wolfwood well from the southern area of the Deadwood core acreage averaged approximately 688 Boe/d
on a 12-day test.
The Deadwood Plant continues to process at capacity and after an additional delivery point upgrade to increase
capacity in the second quarter, no gas takeaway constraints were experienced.
CENTRAL BASIN PLATFORM (CBP)




Apache has an estimated 1.7 million gross acres (780,000 net) in the CBP with an estimated 690 MMboe of
resource potential from nearly 9,800 identified drilling locations.
In the Three Bar Shallow Unit, three active drilling rigs spud a total of six horizontal wells during the third quarter
with development focused on the Lower Wichita Albany landing zone.
Production optimization operations are focused on water handling, gas takeaway and pump placement.
The initial phase of field development at the Three Bar Shallow Unit will commence in the fourth quarter and an
infill drilling program will be tested in early 2014.
7
Permian (Continued)
NORTHWEST SHELF - YESO


Apache has approximately 105,000 gross acres (70,000 net) in the Yeso play with 1,800 identified locations and an
estimated 108 MMboe of resource potential.
Three drilling rigs (two vertical and one horizontal) spud a total of 22 vertical wells and five horizontal wells during
the third quarter.
DELAWARE BASIN


Apache has an estimated 609,000 gross acres (287,000 net) in the Delaware Basin with an estimated 284 MMboe
resource.
In the Pecos Bend area of Loving and Reeves Counties, Texas, Apache are running two rigs and six additional
rd
horizontal wells are expected to be completed by year-end. The Cardinal 4-1H was drilled to 3 Bone Springs sand
fracing the Upper Wolfcamp section across 17 stages. The 30-day average IP for the Cardinal was 824 Boe/d.
PERMIAN WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
Fusselman
Wolfwood
Wolfcamp Shale (U)
Wolfcamp Shale (M)
WELL NAME
COUNTY, ST
TVD
LATERAL
IP (30-Day)
Squire 9007
Glasscock, TX
10,460’
N/A
567 Boe/d
Maui 5 #1
Glasscock, TX
10,810’
N/A
410 Boe/d
Cook 21 #19
Glasscock, TX
10,420’
N/A
734 Boe/d
Upton, TX
9,057’
4,876’
784 Boe/d (7 days)
Sugg 4948 #H23M
Irion, TX
7,900’
7,150’
502 Boe/d
Clinch #H53LU
Irion, TX
8,137’
8,589’
620 Boe/d
Upton, TX
9,438’
4,878’
821 Boe/d
Glasscock, TX
9,300’
4,917’
413 Boe/d
Ector, TX
11,100’
N/A
549 Boe/d
Andrews, TX
7,028’
6,342’
1,086 Boe/d
Miller 36 #2 HU
Miller 36 #1 HM
Cline Shale
Marlin 47 #4H
Wolfberry/Penn
Augusta Barrow #2302
Wichita Albany
Three Bar Shallow Unit 117H
Grayburg
Cowden 10 #6H
Crane, TX
2,970’
4,263’
553 Boe/d
Wolfcamp
Cardinal 4 1H
Loving, TX
11,114’
3,500’
824 Boe/d
8
Central






Third-quarter 2013 production in the Central Region was a record 94,773
CENTRAL KEY STATS
Boe/d, up 4 percent over the second quarter of 2013 and up 31 percent
Third-Quarter 2013
over the third quarter of 2012.

Q3 Production:
94,773 Boe/d
Liquids production increased 9 percent over the second quarter of 2013 to

Q3
Wells:
91 wells, 49 net
49 Mbbl/d and up 94 percent from the third quarter of 2012.

Q3 Operated Rigs:
Avg 31 rigs
Liquids constitute 52 percent of production (oil is 27%), up from 35
percent in the third quarter of 2012.
For the quarter, the Central Region averaged 31 drilling rigs and drilled 91 gross (49 net) wells.
Apache continues to work numerous plays across its two million gross acreage position focusing on the liquids-rich
Granite Wash and the oily Tonkawa, Marmaton, Cottage Grove, Cleveland and Canyon Wash plays. Horizontal
drilling and multi-stage fracking have resulted in tremendous opportunities in the low permeability Anadarko
Basin. Apache is continuing to set itself up for future development by expanding our existing plays.
During the quarter, the Apache increased its acreage position by continuing to lease and renew acres. By year-end
Apache expect to have added over 50,000 net acres in strategic locations throughout the basin.
APACHE CENTRAL REGION
ACREAGE AND KEY PLAYS
9
Central (Continued)
GRANITE WASH



Apache holds approximately 828,000 gross (418,000 net) acres prospective for the Granite Wash with an
estimated resource potential of 4.5 Bboe from 22,800 drilling locations.
During the quarter, Apache drilled and completed 15 gross Granite Wash wells.
Apache has drilled over 164 Granite Wash horizontals during the last 5 years with consistently strong results.
TONKAWA



Apache holds an estimated 810,000 gross (310,000 net) acres prospective for the Tonkawa with an estimated
resource potential of 202 MMboe from 2,800 drilling locations.
During the quarter, Apache drilled and completed 31 gross Tonkawa wells.
Apache continues to be a dominant player in the Tonkawa play, completing more wells in the formation than any
other company.
MARMATON


Apache holds an estimated 662,000 gross (512,000 net) acres in the Marmaton with an estimated resource
potential of 161 MMboe from 1,593 drilling locations.
During the quarter, Apache drilled and completed 15 gross Marmaton wells.
CLEVELAND


Apache holds an estimated 768,000 gross (438,000 net) acres in the oil-rich Cleveland play with an estimated
resource potential of 195 MMboe from 2,302 drilling locations.
During the quarter, Apache drilled and completed 11 gross Cleveland wells.
COTTAGE GROVE



Apache holds an estimated 238,000 gross (100,000 net) acres in the oil-rich Cottage Grove.
During the quarter, Apache drilled and completed ten gross Cottage Grove wells.
The Cottage Grove play now has over a dozen successful tests to date with another 18 scheduled in 2014.
CANYON WASH


Apache holds an estimated 147,000 gross (100,000 net) acres prospective for the Canyon Wash in the Bivins Ranch
area (Whittenburg Basin) with an estimated 101 MMboe of resource potential from 1,016 drilling locations.
During the quarter, Apache drilled and completed five gross Canyon Wash wells.
10
Central (Continued)
CENTRAL WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
WELL NAME
COUNTY, ST
TVD
IP
Granite Wash
Ramp 26 #7H
Hemphill, TX
11,193’
191 Bo/d, 7,354 Mcf/d
Granite Wash
Stiles 3 #20-3H
Wheeler, TX
12,646’
436 Bo/d, 6,900 Mcf/d
Sweetwater
Stiles 29-3H
Wheeler, TX
11,322’
726 Bo/d, 1,660 Mcf/d
Tonkawa
Hagerman #1-25H
Roger Mills, OK
9,620’
1,059 Bo/d, 1,490 Mcf/d
Tonkawa
Denny 2-19H
Roger Mills, OK
8,467’
480 Bo/d, 400 Mcf/d
Cleveland
Knox Pipkin 28 #4H
Ochiltree, TX
6,836’
1,079 Bo/d, 1,229 Mcf/d
Cleveland
Leland Mekeel 226-5H
Ochiltree, TX
7,608’
407 Bo/d, 680 Mcf/d
Cottage Grove
Bartz 19 #21-19H
Wheeler, TX
10,703’
1,124 Bo/d, 1,400 Mcf/d
Canyon Wash
Boys Ranch 116 #5
Oldham, TX
9,501’
1,983 Bo/d, 1,576 Mcf/d
11
Gulf Coast Onshore





Third-quarter 2013 production in the Gulf Coast Onshore averaged
GULF COAST
31,823 Boe/d, 3 percent higher than the second quarter of 2013 and 18
ONSHORE KEY STATS
percent higher than the third quarter of 2012.
Third-Quarter 2013
Gas production grew to 111 MMcf/d, primarily due to a new well at

Q3 Production:
31,823 Boe/d
Flores field and recompletions at South Pass 24 and Second Bayou

Q3 Wells:
7 wells, 6 net

Q3 Operated Rigs:
Avg 1 rigs
fields. In addition, in Atchafalaya Bay the SL 20369 #3 well IP’d at 41.5
MMcf/d and 136 Bo/d.
Oil production for the quarter averaged 11,126 bo/d, up 5 percent over the second quarter of 2013. Increased oil
volumes were driven by workovers, recompletions and new drilling activities at South Pass 24, Golden Meadow
and rate improved performance from the Lake Paige field.
In early September, an additional compressor at the W-1 facility was installed to allow for new drills and
recompletions in the South Pass 24 field resulting in increased production.
To handle increased production at Golden Meadow, a new facility will be constructed and completed in the fourth
quarter of 2013. Also, a new 8” flow line to connect two other batteries in the field is nearing completion and will
enable Apache to open new production to the north and optimize existing production.
APACHE GULF COAST ONSHORE REGION
ACREAGE AND KEY PROJECTS
12
Gulf Coast Onshore (Continued)
GULF COAST ONSHORE WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
Atchafalaya Bay
Austin Chalk
Golden Meadow
Field
WELL NAME
SL 20369 #3
Liebscher O.L. Unit
#2H
SL 378 #156
SL 378 #154
COUNTY, ST
TVD
LATERAL
IP
St. Mary, LA
18,800’
N/A
136 Bo/d, 41,510 Mcf/d
Washington, TX
17,000’
5,659’
591 Bo/d, 2,662 Mcf/d
LaFourche, LA
2,879’
N/A
384 Bo/d, 85 Mcf/d
LaFourche, LA
2,846’
N/A
140 Bo/d, 27 Mcf/d
13
Gulf of Mexico Shelf




Third-quarter 2013 production in the Gulf of Mexico Shelf was 91,245
GOM SHELF KEY STATS
Boe/d, a 2 percent increase from the third quarter of 2012.
Third-Quarter 2013
During the quarter, Apache averaged five rigs and drilled a total of five

Q3 Production:
91,245 Boe/d
gross (three net) wells.

Q3 Wells:
5 wells, 3 net
In Apache’s shallow-water sub-salt exploration play, the Heron well (Main

Q3 Operated Rigs:
Avg 5 rigs
Pass Block 295), has reached measured depth of 19,555 feet. In addition
to the previously announced 76 feet of net oil pay encountered in two
shallow sands, the well subsequently found oil pay across multiple sands between 11,400 feet and 16,700 feet MD,
bringing the total to 100 feet of net oil pay. The well is being evaluated to determine delineation and development
program for the discovery, with follow-up drilling expected to begin around year-end 2013.
On September 30, 2013, Apache closed its previously announced sale of Gulf of Mexico Shelf assets. Apache
retained 50 percent ownership in all explorations blocks and in horizons below production in developed blocks,
where high-potential deep hydrocarbon plays are being tested.
14
Gulf of Mexico Deepwater



Third-quarter 2013 production in the Gulf of Mexico Deepwater was
10,098 Boe/d.
In September, Apache began drilling the San Marcos Prospect utilizing the
Ensco 8505 rig. Located in MC 983, the well is targeting middle Miocene
sands in a three-way sub-salt closure.
Apache has 10 Exploration Plans for new wells approved by the Federal
Government allowing the region to stay out in front of contracted rigs.
GOM DW KEY STATS



Third-Quarter 2013
Q3 Production:
10,098 Boe/d
Q3 Wells:
0 wells
Q3 Operated Rigs:
Avg <1 rig
LUCIUS DEVELOPMENT (11.7% APA)




During the quarter, Anadarko drilled the KC 875-3 well and encountered more than 600 net feet of oil pay in the
Pliocene reservoirs. Completion work immediately commenced for the well following drilling and logging activities.
The KC 919-6 well reached total depth during the quarter and also encountered over 600 net feet of total pay in
the primary and secondary objectives.
The Lucius spar hull was successfully towed, upended and secured in Keathley Canyon as planned. Subsea
infrastructure is currently being installed. Topside facilities are 82 percent complete and on schedule to be
delivered and lifted into place during the first quarter of 2014.
Initial production is expected in 2014 at 10,000 Boe/d net to Apache’s interest.
HEIDELBERG (12.5% APA)



The hull fabrication for the Lucius look-a-like facility is approximately 50 percent complete.
Development drilling is scheduled to begin in the first quarter of 2014.
Initial production is expected in 2016 at 10,000 Boe/d net to Apache’s interest.
APACHE GULF OF MEXICO DEEPWATER REGION
ACREAGE AND KEY ASSETS
15
Canada





Third-quarter 2013 production in Canada, which includes Kitimat upstream
CANADA KEY STATS
production, was 113,819 Boe/d, up 2 percent from the second quarter of
Third-Quarter 2013
2013.

Q3 Production:
113,819 Boe/d
Total liquids production remained steady, averaging 25,585 Bbls/d, up

Q3 Wells:
23 wells, 18 net
slightly from second-quarter 2013 volumes of 25,259 Bbls/d.

Q3 Operated Rigs:
Avg 6 rig
In September, Apache completed the sale of oil and gas producing
properties in the Nevis, North Grant Lands and South Grant Lands areas of
western Alberta, Canada. The assets comprised 621,000 gross acres (530,000 net acres) and more than 2,700 wells
averaging net production of approximately 69 MMcf/d and 247 Bbls/d in the third quarter.
In September, Apache announced the sale of its Hatton, St. Lina, Marten Hills, Snipe Lake, Valhalla, and a portion
of its Hawkeye producing properties. These are primarily dry gas developments located in Saskatchewan and
Alberta and comprise approximately 4,000 operated and 1,300 non-operated wells with average daily production
of approximately 39 MMcf/d and 679 Bbls/d. This sale was completed in October.
These recently announced sales in Canada have resulted in the divestment of approximately 50 percent, 30
percent and 17 percent of Apache’s wells, acreage and production, respectively.
APACHE CANADA REGION
ACREAGE AND KEY ASSETS
16
Canada (Continued)
CANADA WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
Bluesky
Montney
Glauconite
WELL NAME
TVD
Lateral Length
IP (% Gas)
04-30-058-19W5
7,250’
4,399’
1,359 Boe/d* (80%)
01-20-057-20W5
8,123’
4,419’
683 Boe/d* (76%)
08-18-057-19W5
8,379’
3,982’
604 Boe/d* (75%)
02/16-12-059-21W5
8,733’
3,937’
1,581 Boe/d* (95%)
01-13-041-06W5
7,592’
6,368’
604 Boe/d* (99%)
05-15-041-06W5
7,742’
6,516’
738 Boe/d* (70%)
03/14-24-041-06W5
7,739’
6,384’
727 Boe/d* (47%)
* Less than 30 day rate
17
Canada (Continued)
KITIMAT LNG PROJECT (50% APA)


During the third quarter, Kitimat Upstream gross production in the Horn River and Liard Basins averaged 176
MMcf/d (68.2 MMcf/d net to Apache’s interest), up 5 percent from second quarter 2013 primarily due to a
significant third-party processing plant turnaround in the second quarter 2013.
One drilling rig was active during the third quarter which drilled in the 87-E Tenure well in the Liard Basin reaching
total depth at 14,754 feet. The 77-A Tenure well was subsequently spud.
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
18
INTERNATIONAL
Egypt







In Egypt, Apache’s operations continue uninterrupted.
Third quarter gross oil production was 193,869 Bo/d and
EGYPT KEY STATS
gross gas production was 916 MMcf/d, for a total of
Third-Quarter 2013
346,530 Boe/d.

Q3 Gross Production:
346,530 Boe/d

Q3
Net
Production:
Increased oil production occurred at Razzak and Kalabsha as

With Tax:
147,711 Boe/d
a result of a number of new high-rate wells coming on

% of Gross:
42.6%
stream.

Without Tax:
104,776 Boe/d
Increased gross gas production was primarily due to the

% of Gross:
30.2%
completion of the 24-inch Abu Gharadig to Dahshour

Q3 Wells:
33 well, 30 net
pipeline repair, which allowed increased gas production

Q3 Operated Rigs:
Avg 26 rigs
from Abu Gharadig Plant and the addition of the Hydra 4
gas well.
Apache averaged 26 rigs and drilled a total of 33 gross (30 net) wells in the third quarter.
Exploration activity continued with one well each being drilled in the Faghur Basin, Alamein Basin, Abu Gharadig
Basin and on the Khalda Ridge for a total of four exploration wells during the quarter. Highlights include:
 Riviera SW-1X on the southern flank of the Abu Gharadig Basin test-flowed 5,822 bo/d and 2.8 MMcf/d from a
Lower Bahariya sand with 24 feet of net pay. Drilling and completion costs for the well were $5.0 million.
Apache has a 100-percent working interest in the WD 30 Development Lease.
 Narmer-1X test-flowed 1,166 bo/d and 400 Mcf/d. The well targeted a stratigraphic trap, and although
appraisal wells are required, the trap is estimated to exceed 1,000 acres. Drilling costs for the well were $3.1
million, with completion pending. Apache has a 100-percent working interest in the Khalda Offset Concession.
On August 29, 2013, Apache and Sinopec International Petroleum Exploration and Production Corporation
announced a global strategic partnership, which included Sinopec gaining a one-third minority partnership interest
in Apache’s Egypt oil and gas business in exchange for $3.1 billion in cash. Apache will continue to operate the
Egypt upstream oil and gas business. The Egypt partnership is subject to customary governmental approvals and is
expected to close during the fourth quarter of 2013.
A horizontal well, the AG 115 targeting the AR/D formation, was spud during the quarter and is currently being
completed. This is the first of three horizontal wells to be drilled in the Khalda II area. It will be followed by two
horizontal wells targeting the AR/G dolomite reservoir - the Main Razzak 102H and the NRQ 255-6H. The Main
Razzak 102H is scheduled to spud in mid-November and the NRQ 255-6H in late-December. Four additional
horizontal wells will be spud before year-end on both Khalda and Qarun properties.
19
Egypt (Continued)
EGYPT WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
WELL NAME
TMD
IP
Paleozoic
SIWA L1X
15,449’
4,730 Bo/d
Alamein Dol
NRZK 9
8,647’
3,550 Bo/d
AEB 3D
BUCHIS W2X
14,650’
2,560 Bo/d
AEB 2
WKAL A8
12,500’
2,095 Bo/d
APACHE EGYPT REGION
ACREAGE AND KEY BASINS
20
Egypt (Continued)
EGYPT PRODUCTION DETAIL
3Q 2013
Gross Production
Net Production With Tax
% of Gross
Net Production Without Tax
% of Gross
3Q 2012
Oil (MBbls/d)
Gas (Mcf/d)
Oil (MBbls/d)
Gas (Mcf/d)
193,869
915,965
210,848
907,636
89,294
350,504
97,546
329,793
46%
38%
46%
36%
62,780
251,979
65,019
250,335
32%
28%
31%
28%
21
Australia


Third-quarter 2013 production was 54,144 Boe/d, down 5 percent from
the second quarter of 2013, due to natural field declines as well as a
planned shut-down at Van Gogh to allow for the installation and tie-in of
the new Coniston subsea manifolds and piping.
During the third quarter, the region operated two semi-submersible
drilling rigs and drilled five gross (three net) wells.
APACHE AUSTRALIA REGION
22
AUSTRALIA KEY STATS



Third-Quarter 2013
Q3 Production:
54,144 Boe/d
Q3 Wells:
5 wells, 3 net
Q3 Operated Rigs:
Avg 2 rigs
Australia (Continued)
MACEDON (28.57% APA)


During the quarter, the BHP-operated Macedon gas plant was completed and commenced operations.
Plant output has been steadily increasing with peak gross gas sales up to 212 MMcf/d. Current production net to
Apache is 56 MMcf/d.
BALNAVES (65% APA)



Development well drilling commenced in the third quarter in batch mode. A total of four wells are planned, two
producers, one water injector and one gas injector.
Also during the quarter, the Balnaves-6H oil producer was completed, along with the Balnaves-8GI gas injector.
The FPSO and facilities remain on track for start-up by the end of the second quarter of 2014.
CONISTON (52.5% APA)


Phase one of the offshore installation campaign was successfully completed. The final phase of subsea installation
work is planned for the first quarter of 2014.
Preparation for the upcoming shipyard work is ongoing. The project remains on schedule for first production in
2014.
JULIMAR (65% APA) / WHEATSTONE LNG (13% APA)


Construction is now over 20 percent complete.
During the quarter, shoreline micro-tunnel boring was completed and commenced piling for LNG tanks.
23
North Sea







Third-quarter 2013 production in the North Sea was 66,787 Boe/d,
down 2 percent from the third quarter of 2012.
Production declines due to planned turnaround at Forties were
partially offset by a successful drilling program.
During the third quarter, the region operated an average of four drilling
rigs and drilled nine gross (six net) wells.
From the Forties Bravo platform, the Tonto-2 oil
development well was successfully drilled and encountered
203 feet of net oil pay. The well came online in September at
an initial peak test rate of 8,300 Bo/d. Apache holds a 100
percent working interest in the well.
The Forties Charlie platform development well was
successfully drilled off of 4D seismic data. The horizontal
completion hole logged 200 feet of net oil pay and achieved
an initial 30-day production rate of 3,500 Bo/d.
During the third quarter, Apache completed the 3D seismic
acquisition program over the Forties-Bacchus area and
additional seismic over recently acquired non-operated
exploration acreage. 4D time lapse seismic processing will be
completed in November and used to optimize the 2014
Forties field development drilling program.
A mobile jack-up rig will arrive at the Forties Alpha Satellite
Platform in the fourth quarter. Hook up and commissioning
of this platform is 60 percent complete, and first oil is
expected before the end of 2013.
NORTH SEA KEY STATS



Third-Quarter 2013
Q3 Production:
66,787 Boe/d
Q3 Wells:
9 wells, 6 net
Q3 Operated Rigs:
Avg 4 rigs
APACHE NORTH SEA REGION
NORTH SEA WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
WELL NAME
Supra Charlie
21/10-C57
Brimmond Sand
Tonto-2
IP
3,500 Bo/d*
8,300 Bo/d (Peak Rate)
24
Argentina






ARGENTINA KEY STATS
Third-quarter 2013 production in Argentina was 42,266 Boe/d, flat versus
Third-Quarter 2013
the second quarter of 2013.

Q3 Production:
42,266 Boe/d
Total “Gas Plus” sales averaged 82 MMcf/d, with nearly 100 percent of

Q3 Wells:
8 wells, 8 net
the volumes sold at a “Gas Plus” price of $5.03 per Mcf.

Q3 Operated Rigs:
Avg 3 rigs
During the quarter, the region operated three rigs and drilled eight gross
(eight net) wells, all located in the Neuquén Basin.
Four deep Lajas vertical development wells were drilled
ACREAGE AND KEY BASINS
in the third quarter, each completed using multi-stage
fracs. These wells had a combined 30-day IP of 8.8
MMcf/d and 570 Bo/d (2,030 Boe/d).
Additional activity in the third quarter focused on
recompletions in the Neuquén Basin, targeting both oil
and gas reservoirs (Lajas, Lotena and Centenario
reservoirs and pre cuyo reservoirs) and increased lift
capacity jobs in several fields in both Austral and
Neuquén Basins.
The region is currently working on a strategy for a second
phase of exploration activity in the Vaca Muerta in 2014.
Apache holds 1.2 million net acres in the Vaca Muerta
shale, of which approximately 950,000 net acres are in
the oil and wet gas window of the play.
APACHE ARGENTINA REGION
ARGENTINA WELL HIGHLIGHTS
Third-Quarter 2013
PLAY/TARGET
WELL NAME
TVD
IP
Lajas
EFO-161
12,660’
841 Boe/d
Lajas
EFO-241
12,540’
597 Boe/d
25

Third-quarter 2013 operations supplement

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