Operations Supplement - Apache Corporation
2013 4th Quarter & Full-Year
EARNINGS RELEASE OPERATIONS SUPPLEMENT
TABLE OF CONTENTS Overview ............................................................................................................................................................................... 2 NORTH AMERICA .............................................................................................................................................................. 6 Permian......................................................................................................................................................................... 6 Central .......................................................................................................................................................................... 9 Gulf Coast Onshore ..................................................................................................................................................... 12 Gulf of Mexico Offshore ............................................................................................................................................. 13 Canada ........................................................................................................................................................................ 14 INTERNATIONAL ............................................................................................................................................................. 17 Egypt ........................................................................................................................................................................... 17 Australia ...................................................................................................................................................................... 20 North Sea .................................................................................................................................................................... 22 Argentina .................................................................................................................................................................... 23
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
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 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.
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4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Overview North America onshore liquids production grew 34 percent, or by 45,600 Bbls/d, to over 178,000 Bbls/d in 2013
Apache averaged 114 rigs worldwide during the fourth quarter, 70 percent of which were onshore North America. The company completed 480 gross wells during the quarter, 75 percent of which were onshore North America. The Permian and Central regions were the main drivers of North American onshore liquids growth. During the quarter, these two regions drilled 355 gross wells, or 74 percent, of the total wells worldwide; Permian and Central combined grew liquids production 32,482 Mbbls/d over the fourth quarter of 2012, or 27 percent, to 151 Mbbls/d, which represented 40 percent of total worldwide liquids production. Combined total production from the Permian and Central regions was 227 Mboe/d, representing 33 percent of total company production. Total worldwide net daily production of oil, natural gas, and natural gas liquids averaged 688 Mboe/d in the fourth quarter (661.5 Mboe/d excluding noncontrolling interest). Apache replaced 140% of worldwide production during 2013 and grew proved reserves by nearly 4%, excluding acquisitions, divestments and revisions.
GLOBAL KEY STATS* Fourth-Quarter 2013
Q4 Production: As Reported: Adjusted: Q4 Wells: Q4 Rigs:
687,911 Boe/d 661,484 Boe/d** 480 well, 397 net Avg 114 rigs
Full-Year 2013
2013 Production: 2013 Wells: 2013 Rigs:
760,775 Boe/d 1,591 wells, 1,233 net Avg 119 rigs
NORTH AMERICAN KEY STATS* Fourth-Quarter 2013
Q4 Production: Q4 Wells: Q4 Rigs:
362,311 Boe/d 393 wells, 316 net Avg 81 rigs
Full-Year 2013
2013 Production: 2013 Wells: 2013 Rigs:
439,041 Boe/d 1,322 wells, 990 net Avg 84 rigs
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. **Excluding noncontrolling interest, Q4 adjusted production was 661,484.
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
FOURTH-QUARTER PRODUCTION BY REGION 688 Mboe/d Australia
9%
2013 YEAR-END RESERVES BY REGION* 2.6 Bboe Argentina
Argentina
Australia
6%
3%
12%
North Sea
North Sea
Central
11%
14%
Central
12% 6%
Egypt
10%
Egypt
N.A. Onshore 51%
22%
19%
2%
GOM DW
Permian
35% Permian
17% 1% 0% GOM DW GOM Shelf
4%
14%
3%
Canada
GC Onshore
Canada GC Onshore
FOURTH-QUARTER PRODUCTION BY PRODUCT 688 Mboe/d
FOURTH-QUARTER REVENUE BY PRODUCT $3.7 Billion International Liquids $1.8 Bn
North American Liquids
International Liquids
North American Liquids $1.3 Bn
27% 48%
28%
35%
21% International Gas
24% 8% North American Gas
North America Onshore
International Gas $0.3 Bn
International & Offshore
3 *Includes non-controlling interest.
Liquids
9% North American Gas $0.3 Bn
Natural Gas
30%
19%
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT 21% 29%
ACTUAL 2009 VERSUS PRO FORMA 4Q 2013 PRODUCTION COMPARISON* ACTUAL 2009 583 Mboe/d Australia
7%
PRO FORMA FOURTH-QUARTER 2013 634 Mboe/d Australia
Argentina
8%
9%
Central
6%
North Sea
Argentina
7%
North Sea
11%
Central
15%
12%
9% Permian GC
3% Onshore
Egypt
26%
13%
N.A. Onshore 31%
N.A. Onshore 55%
16% Egypt
21%
Canada GOM Offshore
1%
Permian
14%
17% Canada GOM Shelf
ACTUAL 2009 PRODUCTION BY PRODUCT 583 Mboe/d International Liquids
International Gas
North American Liquids
International Liquids
24%
19%
21%
GC Onshore
PRO FORMA FOURTH-QUARTER 2013 PRODUCTION BY PRODUCT 634 Mboe/d
North American Liquids
31%
5%
31%
19%
29% International Gas
26%
North American Gas
North America Onshore
North American Gas
International & Offshore
Liquids
Natural Gas
4 *Pro forma represents fourth-quarter volumes less divested volumes from GOM Shelf, Canada and non-controlling interest in Egypt.
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
232
CENTRAL AND PERMIAN PRODUCTION: 4Q 2012 VS 4Q 2013 636
725 333 139 618
Total Production (Mboe/d)
240
15%
220 200
240
227
220
197
200
180 13%
160 140
Liquids Production (Mbbls/d)
134
180 Permian
118
160 140
120
120
100
100
80
80
60 40
18%
93
Central
79
20
40
118
151
Liquids
56%
50
NGLs
17%
101
Oil
32
86
20
0 % Liquids
60
27%
0 4Q 2012
4Q 2013
60%
66%
4Q 2012
4Q 2013
CENTRAL AND PERMIAN PRODUCTION: 2012 VS 2013
240
220
Total Production (Mboe/d) 218
200
29%
200
240
180
127
160 120
220 180
169
140
Permian
160 140
17%
108
100
80
80
60 20
49%
91
61
99
40
46
74
28%
95
0
2012
2013
58%
65%
2012
5
Liquids NGLs
24
60 Central
90%
141
20
0 % Liquids
43%
120
100
40
Liquids Production (Mbbls/d)
2013
Oil
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
NORTH AMERICA Permian
Fourth-quarter 2013 production in the Permian averaged a record 133,713 Boe/d (76 percent liquids), increasing 13 percent over the fourth quarter of 2012. The combination of downtime and pipeline outages caused from severe weather in the region partially offset new production from drilling. For the quarter, the Permian averaged 43 rigs, spud 242 gross wells (of which 83 were horizontal) and completed 289 gross (235 net) wells. During the year, the region maintained an active vertical program but also increased its horizontal rig count. Overall the company averaged 42 rigs, 19 of which were horizontal and completed 785 gross wells, 186 of which were horizontal. This impressive drilling program which spanned the basin added 18,728 Boe/d of production fueling 17% growth year-over-year. During 2013, the Permian replaced 323% of production through drilling activities and increased proved reserves by 14% to 910 MMBOE.
APACHE PERMIAN REGION ACREAGE AND KEY PLAYS
6
PERMIAN KEY STATS Fourth-Quarter 2013
Q4 Production: Q4 Wells: Q4 Rigs:
133,713 Boe/d 289 wells, 235 net Avg 43 rigs
Full-Year 2013 2013 Production: 127,066 Boe/d 2013 Wells: 785 wells, 615 net 2013 Rigs: Avg 42 rigs 2013 Production Replacement 323% Proved Reserves: 910 MMBoe
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued) WOLFCAMP SHALE
Apache has an estimated 460,000 gross acres (369,000 net) prospective for Wolfcamp Shale. The Barnhart area of Irion County remained a key component of Apache’s horizontal Wolfcamp program. During the quarter, six horizontal rigs drilled 22 Upper & Middle Wolfcamp laterals. 12 wells have been drilled to 1.5 mile lateral lengths targeting the Upper Wolfcamp and ten wells have been drilled to 1.5 mile lateral lengths targeting the Middle Wolfcamp. A new 3D seismic program is progressing and acquisition should start in the first quarter of 2014. As of December, the success of the Barnhart drilling program is now contributing ~10,000 Boe/d to the region.
CLINE SHALE
Apache has an estimated 640,000 gross acres (510,000 net) prospective for Cline Shale. 10 Lower Cline wells were drilled during the quarter while the inventory continues to grow.
MIDLAND BASIN VERTICAL
Apache has an estimated 950,000 gross acres (510,000 net) in the Midland Basin vertical play area. During the fourth quarter, Apache continued to focus on building inventory in the vertical Fusselman play, testing Fusselman field extensions in new structures. Continued refinement and interpretation of merged-3D is being used to help refine high rate of return prospects. During the fourth quarter, three notable Fusselman wells averaged approximately 333 Boe/d (85 percent oil) and two notable Wolfwood wells (from the southern area of the Deadwood core acreage) averaged approximately 300 Boe/d (84 percent oil). The Deadwood Plant continues to process at capacity and after an additional delivery point upgrade to increase capacity in the third quarter, no gas takeaway constraints were experienced.
CENTRAL BASIN PLATFORM (CBP)
Apache has an estimated 1.8 million gross acres (850,000 net) in the CBP. The Three Bar field had the second highest production increase for the fourth quarter growing 1,633 Boe/d, or 39% over the third quarter, 78% of which were liquids. Production from the field more than tripled year-over-year. By the end of the fourth quarter, the Three Bar Shallow Unit averaged total gross production of 5,400 Bo/d and 8,600 Mcf/d from 16 completed wells. Production optimization operations are focused on water handling, gas takeaway and pump placement.
NORTHWEST SHELF - YESO
Apache has approximately 115,000 gross acres (95,000 net) in the Yeso play. Three drilling rigs (two vertical and one horizontal) spud a total of 29 wells during the fourth quarter.
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4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued) DELAWARE BASIN
Apache has an estimated 550,000 gross acres (215,000 net) in the Delaware Basin. In the Pecos Bend area of Loving and Reeves Counties, Texas, a four-well new ventures testing program was successful and commercialized three horizontal target formations: the 2nd Bone Spring, 3rd Bone Spring, and Wolfcamp across Apache’s acreage. The level of rig activity was increased to three rigs during the fourth quarter and four more wells were spud during this time. The Chaparral 89 #101H began production on December 19th and recently reached a peak rate of 1,161 Boe/d from the Bone Springs.
PERMIAN WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
WELL NAME
Wolfcamp Shale Wolfcamp Shale
Scott Sugg 5051 East H61U Scott Sugg 5554 H43M
Wolfcamp Shale
COUNTY, ST
TVD
LATERAL
IP (Peak 24-Hour)
IP (30-Day)
Irion, TX
6,690’
7,455’
1,152 Boe/d
576 Boe/d
Irion, TX
7,142’
7,628’
1,078 Boe/d
570 Boe/d
Scott Sugg 5051 H33M
Irion, TX
7,082’
7,532’
798 Boe/d
673 Boe/d
Wolfcamp Shale
CC 3626 HM
Upton, TX
9,531’
5,835’
926 Boe/d
647 Boe/d
Wolfcamp Shale
Miller 36 #2 HU
Upton, TX
9,057’
4,877’
756 Boe/d
677 Boe/d
Wolfcamp Shale
Rocker B 1105 HL
Reagan, TX
8,705’
4,459’
843 Boe/d
416 Boe/d
Cline Shale
Greatwhite 44 #3H
Glasscock, TX
9,310‘
4,270’
956 Boe/d
389 Boe/d
Cline Shale
Ballenger 3142 #5H
Glasscock, TX
9,435‘
5,150’
827 Boe/d
344 Boe/d
Cline Shale
Rocker B 1106 HC
Reagan, TX
9,578‘
4,437’
763 Boe/d
343 Boe/d
Fusselman
Runner 17 #3
Glasscock, TX
10,205’
N/A
350 Boe/d
264 Boe/d
Wolfwood
Condor 48 #1
Glasscock, TX
10,571’
N/A’
405 Boe/d
361 Boe/d
Wichita Albany
Andrews, TX
7,066’
7,467’
818 Boe/d
586 Boe/d
Yeso
Three Bar Shallow Unit Tony#119H Fed #43
Eddy, NM
6,428’
N/A
308 Boe/d
256 Boe/d
3rd Bone Spring
Chaparral 89 #101H
Loving, TX
10,814‘
3,700’
1,161 Boe/d
500 Boe/d
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4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central
Fourth-quarter 2013 production in the Central Region was 93,153 Boe/d, up 18 percent over the fourth quarter of 2012 with liquids production increasing 57 percent to 49,022 Bo/d over the same time period. Liquids now constitute 53 percent of production (oil is 25%), up from only 39 percent in the fourth quarter of 2012. For the quarter, the Central Region averaged 25 drilling rigs and drilled 66 gross (51 net) wells. During 2013, the Central region replaced 195% of production through drilling activities and increased proved reserves by nearly 14% to 304 MMBoe.
CENTRAL KEY STATS Fourth-Quarter 2013
APACHE CENTRAL REGION ACREAGE AND KEY PLAYS
9
Q4 Production: Q4 Wells: Q4 Rigs:
93,153 Boe/d 66 wells, 51 net Avg 25 rigs
Full-Year 2013 2013 Production: 91,286 Boe/d 2013 Wells: 322 wells, 204 net 2013 Rigs: Avg 27 rigs 2013 Production Replacement 195% Proved Reserves: 304 MMBoe
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central (Continued) GRANITE WASH
Apache holds approximately 828,000 gross (418,000 net) acres prospective for the Granite Wash. During the quarter, Apache drilled and completed six gross Granite Wash wells. For the year, Apache drilled and completed 83 gross or 60 net wells in this play.
TONKAWA
Apache holds an estimated 810,000 gross (310,000 net) acres prospective for the Tonkawa. During the quarter, Apache completed 15 gross Tonkawa wells. For the year, Apache drilled and completed 95 gross or 58 net wells in this play. Apache continues to be a dominant player in the Tonkawa play, completing more wells in the formation than any other company.
CLEVELAND
Apache holds an estimated 768,000 gross (438,000 net) acres in the oil-rich Cleveland. During the quarter, Apache completed eight gross Cleveland wells. For the year, Apache drilled and completed 52 gross or 33 net wells in this play.
MARMATON
Apache holds an estimated 662,000 gross (512,000 net) acres in the Marmaton. During the quarter, Apache completed six gross Marmaton wells. For the year, Apache drilled and completed 24 gross or nine net wells in this play.
COTTAGE GROVE
Apache holds an estimated 238,000 gross (100,000 net) acres in the oil-rich Cottage Grove. During the quarter, Apache completed six gross Cottage Grove wells. For the year, Apache drilled and completed 26 gross or 18 net wells in this play.
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). During the quarter, Apache completed two gross Canyon Wash wells. For the year, Apache drilled 22 gross wells and completed 20 gross or 13 net wells in this play.
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4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central (Continued) CENTRAL WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
COUNTY, ST
TMD
IP (30-Day)
Stiles 4 #21-4H PUD
Wheeler, TX
15,950’
1,630 Boe/d
Ellen 8# 12H
Hemphill, TX
16,400’
2,052 Boe/d
Stiles 18 #25-18H
Wheeler, TX
18,450’
1,130 Boe/d
Stiles 3 SL #27-3H
Wheeler, TX
17,900’
1,448 Boe/d
Bartz 19 #26-19H
Wheeler, TX
17,630’
1,006 Boe/d
Sweetwater
Stiles 68 #28-68H
Wheeler, TX
17,000’
956 Boe/d
Canyon Wash
Boys Ranch 116 #9
Oldham, TX
9,700’
1,257 Boe/d
Cottage Grove
Stiles 18A #18-18H
Wheeler, TX
15,600’
555 Boe/d
Cleveland
Hoover 216 #5H
Ochiltree, TX
12,200’
645 Boe/d
Tonkawa
Beavin 24-17-25 2H
Roger Mills, TX
13,000’
710 Boe/d
Granite Wash
WELL NAME
11
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf Coast Onshore
Fourth-quarter 2013 production averaged 30,421 Boe/d, down from GULF COAST 31,823 Boe/d in the third quarter, due to weather impacts in the ONSHORE KEY STATS Second Bayou, Golden Meadow, Main Pass 69 and Sabine Pass 24 Fourth-Quarter 2013 areas. Q4 Production: 30,421 Boe/d Q4 Wells: 5 wells, 5 net Oil and liquids production decreased 2 percent from the third-quarter Q4 Rigs: Avg 2 rigs 2013, but still managed a 3 percent increase over the fourth quarter of 2012. Full-Year 2013 2013 Production: 30,780 Boe/d Apache averaged two operated and two non-operated drilling rigs 2013 Wells: 43 wells, 36 net while completing a total of 5 gross (5 net) wells during the quarter. 2013 Rigs: Avg 2 rigs In the Golden Meadow Field, Apache completed and brought online the last of its 16 well 2013 drilling program. Gas production in the field increased 3 MMcf/d as a new 8” pipeline was completed to allow increased sales from the north part of the field.
APACHE GULF COAST ONSHORE REGION ACREAGE AND KEY PROJECTS
12
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf of Mexico Offshore
Fourth-quarter 2013 production in the Gulf of Mexico Deepwater and Shelf was 9,167 Boe/d and 2,658 Boe/d, respectively. During the quarter, a second well was spud at MP 295 off structure to attempt to establish downdip limits and assess reserve size. Previously, the Fieldwood operated Heron well (MP 295 #1 BP) reached total depth and found over 100 feet of total pay (approximately 90 feet of oil pay) in several sands which were all full to base (8,400’ – 16,500’ TVD). In October 2013, Apache combined the Deepwater and Shelf Regions to form the Gulf of Mexico Offshore Region.
GOM DEEPWATER KEY STATS
During the quarter, installation of the Lucius spar hull was completed, with the 80,000 barrels of oil per day topsides expected to be towed to location in the first half of 2014. Lucius is progressing on schedule toward first oil production late in the second half of 2014 at 10,000 Boe/d net to Apaches interest.
HEIDELBERG (12.5% APA)
Full-Year 2013 2013 Production: 11,515 Boe/d 2013 Wells: 4 wells, 1.5 net 2013 Rigs: Avg 1 rigs
GOM SHELF KEY STATS*
LUCIUS DEVELOPMENT (11.7% APA)
Fourth-Quarter 2013 Q4 Production: 9,167 Boe/d Q4 Wells: 1 wells, .75 net Q4 Rigs: Avg 1 rig
Fourth-Quarter 2013 Q4 Production: 2,658 Boe/d Q4 Wells: 2 wells, 1.1 net Q4 Non-Operated Rigs: Avg 4 rig Full-Year 2013 2013 Production: 71,062 Boe/d 2013 Wells: 22 wells, 15 net 2013 Rigs: Avg 4 rigs
Construction on the Lucius look-a-like Heidelberg spar is more than 70 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 REGION ACREAGE AND KEY ASSETS
13 *Full-year statistics combine Apache’s operated performance before the sale of Gulf of Mexico Shelf properties and non-operated performance after the sale, while fourth-quarter statistics only reflect Apache’s remaining interet in the non-operated Gulf of Mexico Shelf properties.
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada
Fourth-quarter 2013 production in Canada, which includes Kitimat CANADA KEY STATS upstream production, was 93,199 Boe/d. Fourth-Quarter 2013 Total liquids production averaged 24,413 Bbls/d for the year, up 11 percent Q4 Production: 93,199 Boe/d from 2012 volumes of 22,088 Bbls/d. Q4 Wells: 30 wells, 24 net During the quarter, the region drilled two successful Montney horizontal Q4 Rigs: Avg 10 rig wells in the Kaybob area, with an average 30-day initial production rate of Full-Year 2013 5.4 MMscf/d and 49 Bo/d of liquids. 2013 Production: 107,332 Boe/d During the fourth quarter, Apache completed the sale of its Hatton, St. Lina, 2013 Wells: 143 wells, 116 net Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye producing 2013 Rigs: Avg 8 rigs 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.
APACHE CANADA REGION ACREAGE AND KEY ASSETS
14
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada (Continued) CANADA WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
TVD
Lateral Length
IP (% Gas)
00/04-28-058-19W5
7,833’
4,147’
1,029 Boe/d (66%)
00/09-20-058-18W5
7,548’
4,203’
983 Boe/d* (73%)
00/13-19-058-18W5
7,559’
4,078’
1,029 Boe/d* (73%)
Dunvegan
00/13-29-060-20W5
5,810’
4,455’
409 Boe/d* (52%)
Montney
02/01-13-059-21W5
8,619’
4,058’
990 Boe/d (95%)
Glauconite
00/13-19-041-05W5
7,646’
4,931’
840 Boe/d* (78%)
Bluesky
WELL NAME
* Less than 30 day rate
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4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada (Continued) KITIMAT LNG PROJECT (50% APA)
During the fourth quarter, Kitimat Upstream gross production in the Horn River and Liard Basins averaged 158 MMcf/d (63 MMcf/d net to Apache’s interest), down 9 percent from third quarter 2013 due mainly to significant third party processing plant downtime issues in the fourth quarter. During 2013, the Kitimat upstream drilling program increased the OGIP for Liard by successfully drilling two new wells which extended the northern boundary of the play. One drilling rig was active on the 77-A Tenure well, which is expected to reach TD of 17,257 feet in the first-quarter 2014. Operations started on the 2013/2014 winter 3D seismic programs in the fourth quarter, with a 515 square mile acquisition expected to be completed by early second-quarter 2014.
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
16
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
INTERNATIONAL EGYPT KEY STATS
Egypt
Fourth-Quarter 2013*
In Egypt, Apache’s operations continue uninterrupted. Q4 Gross Production: 357,098 Boe/d Fourth quarter gross oil production was 204,089 Bo/d Oil: 204,089 Bo/d Gas: 918,056 Mcf/d and gross gas production was 918 MMcf/d, for a total of Q4 Wells: 71 well, 69 net 357,098 Boe/d. Q4 Rigs: Avg 27 rigs Increased oil production occurred at Razzak and Full-Year 2013 Kalabsha as a result of a number of new high-rate wells 2013 Gross Production: 349,702 Boe/d coming on stream. Other core areas slightly increased or Oil: 197,622 Bo/d remained flat due to infield drilling and water flood Gas: 912,478 Mcf/d pressure maintenance. 2013 Wells: 210 well, 198 net Apache averaged 27 rigs in the fourth quarter and 2013 Rigs: Avg 26 rigs drilled a total of 71 gross (69 net) wells. Based on new field discoveries in the North Tarek and Khalda Offset concessions, Apache has applied for two additional development leases expected to be approved in 2014. Three recently approved leases brought the number of applications approved during 2013 to 20. The leases approved in 2013 converted 66,000 acres of short-term exploration acreage into 20- to 25-year term development leases. Apache currently has 119 development leases that cover almost 2 million acres. New field discoveries include: The Apries-1X, located in the Khalda Offset Concession within the Shushan Basin, tested 4,389 barrels of oil and 14.2 million cubic feet (MMcf) of gas per day from Paleozoic Basur sand. The well encountered 87 feet of net pay in the Basur. The NTRK-H-1X, located in the North Tarek Concession within the Matruh Basin, tested 20 MMcf of gas and 250 barrels of condensate per day from 60 feet of fracture-stimulated Jurassic Lower Safa pay. The well was a follow-up to the previously announced NTRK-G-1X Upper Safa discovery. Apache also reported the first well of a multi-well horizontal drilling program in the Western Desert, the AG-115H in the Abu Gharadig Field, was drilled, completed and is currently producing. During December, the Khalda JV well produced an average of 1,681 barrels of oil and 3 MMcf of gas per day from a 1,970-foot lateral of horizontal section within a 20 foot oil zone in the Abu Roash D limestone. The AG-115H was one of eight wells initiated during 2013 to test horizontal drilling technology to increase recoveries in tight conventional and unconventional reservoirs. Additional horizontal drilling is planned in the Abu Gharadig and surrounding fields in 2014. During the quarter, the previously-announced transaction with Sinopec International Petroleum Exploration and Production Corporation closed and Apache began reporting a noncontrolling interest.
*Includes non-controlling interest.
17
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt (Continued) EGYPT WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
WELL NAME
TMD
IP
Abu Roash D Lime (Hz)
AG 115H
11,740’
1,681 Bo/d, 3,100 Mcf/d
Lower Safa
SIWA 2L2
15,400’
3,725 Bo/d
Lower Bahariya
WRZK 117
6,613’
1,700 Bo/d
Alam El Buieb 3E
SHAMS 15
13,800’
1,440 Bo/d
Safa
WKAL N4
15,000’
1,790 Bo/d
Alam El Buieb 01
NRZK 11
8,670’
1,870 Bo/d
Abu Roash G Dolomite
MRZK 78 (R)
8,500’
680 Bo/d
Lower Bahariya
WRZK 39 (R)
5,670’
1,210 Bo/d
Alam El Buieb 3D
WKAL A4 (R)
13,600’
680 Bo/d
APACHE EGYPT REGION ACREAGE AND KEY BASINS
18
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt (Continued) EGYPT PRODUCTION DETAIL 4Q 2013
3Q 2013
Oil (MBbls/d)
Gas (Mcf/d)
Oil (MBbls/d)
Gas (Mcf/d)
204,089
918,056
193,869
915,965
Apache Share
74,133
287,179
89,294
350,504
Noncontrolling Interest
15,521
65,437
-
-
Total Net Production With Tax
89,654
352,616
89,294
350,504
43.9%
38.4%
46.1%
38.3%
Apache Share
54,415
220,295
62,780
251,979
Noncontrolling Interest
11,393
50,197
-
-
65,808
270,492
62,780
251,979
32.2%
29.5%
32.4%
27.5%
Gross Production Net Production With Tax:
% of Gross Net Production Without Tax:
Total Net Production Without Tax % of Gross
19
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Australia
Fourth-quarter 2013 production was 59,236 Boe/d, up 9 percent from the third quarter of 2013, due to additional gas sales from Devil Creek and Macedon. During the fourth quarter, the region operated one semi-submersible drilling rig and drilled three gross (one net) wells. During the year, 12 gross (six net) wells were drilled. Apache farmed into the Coastal and Acacia-Desert Blocks of the Canning Basin gaining exposure to this relatively under-explored onshore area in northwest Australia.
APACHE AUSTRALIA REGION ACREAGE AND KEY PROJECTS
20
AUSTRALIA KEY STATS
Fourth-Quarter 2013 Q4 Production: 59,236 Boe/d Q4 Wells: 3 wells, 1.2 net Q4 Rigs: Avg 1 rig Full-Year 2013 2013 Production: 56,568 Boe/d 2013 Wells: 12 wells, 6 net 2013 Rigs: Avg 2 rigs
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Australia (Continued) MACEDON (28.57% APA)
Commenced production on August 16, 2013. Production net to Apache was 55 MMcf/d at end of December 2013. Production in 2014 has ranged from 30-40 MMcf/d net in line with market demand.
BALNAVES (65% APA)
The four well Balnaves development drilling program was completed during the fourth quarter. Also during the quarter, the riser and moorings for the FPSO were installed along with the subsea manifold and production flowlines. The FPSO and facilities remain on track for start-up in the third quarter of 2014.
CONISTON (52.5% APA)
Development drilling re-commenced in December and the first of 17 laterals was drilled in January. As planned, the Ningaloo Vision FPSO disconnected from the mooring at year-end and sailed to Singapore for facility upgrades. The final phase of subsea installation work to increase flowline capacity is planned for the first quarter of 2014. The project remains on schedule for first production in the third quarter of 2014.
JULIMAR (65% APA) / WHEATSTONE LNG (13% APA)
Construction is near 25 percent complete. All platform topsides decks are structurally complete and the steel gravity substructure has left the dry dock for planned quayside works. At the LNG Plant site, the first permanent compressor foundations have been installed and plant piling work continues. At Julimar, rock berm placement for the pipeline crossings was completed and the pipeline bend initiators were installed. The project is 45 percent complete.
UPPER PYRENEES /MOONDYNE (28.57% APA)
Four of the six wells in this add-on development to Pyrenees were drilled/completed by the end of December 2013 and tie in operations are in progress. Three wells were on stream at the end of January 2014 and the combined initial rate from these is in excess of 20,000 Bo/d gross.
CANNING BASIN (ONSHORE EXPLORATION)
Apache entered an agreement with Buru and Mitsubishi to farm in to two areas in the onshore Canning Basin in November 2013. This is an early stage exploration agreement where Apache has agreed to examine opportunities for further development with the Canning joint venture. The arrangement is subject to registration with the local State Government authority.
21
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
North Sea
Fourth-quarter 2013 production in the North Sea was 75,212 Boe/d, up 13 percent from the third quarter of 2013 due to a successful drilling program and recovered volumes from third quarter turnarounds. During the fourth quarter, the region operated an average of five drilling rigs and drilled four gross (three net) wells. From the Beryl Alpha platform, the XSP horizontal well was successfully drilled and encountered 688 feet of net oil pay along the wellbore. This well came online in December and achieved an initial 30-day production rate of 7,500 Bo/d and 2.8 MMcf/d. The Beryl Bravo B75 well was also brought online in December and achieved an initial 30-day production rate of 3,740 Bo/d and 6.5 MMcf/d The Forties Alpha Satellite Platform (“FASP”) commissioning is 99% complete with only the first oil systems remaining. The FASP is expected to be fully operational in the first quarter of 2014 with drilling expected to commence in the second quarter.
NORTH SEA KEY STATS
Fourth-Quarter 2013 Q4 Production: 75,212 Boe/d Q4 Wells: 4 wells, 3.2 net Q4 Rigs: Avg 4 rigs Full-Year 2013 2013 Production: 73,487 Boe/d 2013 Wells: 19 wells, 14 net 2013 Rigs: Avg 4 rigs
APACHE NORTH SEA REGION ACREAGE AND KEY PROJECTS
NORTH SEA WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
WELL NAME
IP
Cormorant
A86
7,500 Bo/d, 2.8 MMcf/d
Linnhe / Beryl
B75
3,740 Bo/d, 6.5 MMcf/d
Delta reservoir
FB4-1
2,100 Bo/d
UMS reservoir
FD5-1
2,700 Bo/d
22
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Argentina
ARGENTINA KEY STATS Fourth-quarter 2013 production in Argentina was 42,729 Boe/d, flat Fourth-Quarter 2013 versus the third quarter of 2013. Q4 Production: 42,729 Boe/d Total “Gas Plus” sales averaged 105 MMcf/d in the fourth quarter, with Q4 Wells: 9 wells, 8 net nearly 100 percent of these volumes sold at a “Gas Plus” price of $4.93 Q4 Rigs: Avg 1 rig per Mcf. Full-Year 2013 During the quarter, the region operated one rig and drilled nine gross 2013 Production: 42,709 Boe/d (eight net) wells, all located in the Neuquén Basin. 2013 Wells: 28 wells, 24 net A 10 well shallow (
EARNINGS RELEASE OPERATIONS SUPPLEMENT
TABLE OF CONTENTS Overview ............................................................................................................................................................................... 2 NORTH AMERICA .............................................................................................................................................................. 6 Permian......................................................................................................................................................................... 6 Central .......................................................................................................................................................................... 9 Gulf Coast Onshore ..................................................................................................................................................... 12 Gulf of Mexico Offshore ............................................................................................................................................. 13 Canada ........................................................................................................................................................................ 14 INTERNATIONAL ............................................................................................................................................................. 17 Egypt ........................................................................................................................................................................... 17 Australia ...................................................................................................................................................................... 20 North Sea .................................................................................................................................................................... 22 Argentina .................................................................................................................................................................... 23
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
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 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
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Overview North America onshore liquids production grew 34 percent, or by 45,600 Bbls/d, to over 178,000 Bbls/d in 2013
Apache averaged 114 rigs worldwide during the fourth quarter, 70 percent of which were onshore North America. The company completed 480 gross wells during the quarter, 75 percent of which were onshore North America. The Permian and Central regions were the main drivers of North American onshore liquids growth. During the quarter, these two regions drilled 355 gross wells, or 74 percent, of the total wells worldwide; Permian and Central combined grew liquids production 32,482 Mbbls/d over the fourth quarter of 2012, or 27 percent, to 151 Mbbls/d, which represented 40 percent of total worldwide liquids production. Combined total production from the Permian and Central regions was 227 Mboe/d, representing 33 percent of total company production. Total worldwide net daily production of oil, natural gas, and natural gas liquids averaged 688 Mboe/d in the fourth quarter (661.5 Mboe/d excluding noncontrolling interest). Apache replaced 140% of worldwide production during 2013 and grew proved reserves by nearly 4%, excluding acquisitions, divestments and revisions.
GLOBAL KEY STATS* Fourth-Quarter 2013
Q4 Production: As Reported: Adjusted: Q4 Wells: Q4 Rigs:
687,911 Boe/d 661,484 Boe/d** 480 well, 397 net Avg 114 rigs
Full-Year 2013
2013 Production: 2013 Wells: 2013 Rigs:
760,775 Boe/d 1,591 wells, 1,233 net Avg 119 rigs
NORTH AMERICAN KEY STATS* Fourth-Quarter 2013
Q4 Production: Q4 Wells: Q4 Rigs:
362,311 Boe/d 393 wells, 316 net Avg 81 rigs
Full-Year 2013
2013 Production: 2013 Wells: 2013 Rigs:
439,041 Boe/d 1,322 wells, 990 net Avg 84 rigs
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. **Excluding noncontrolling interest, Q4 adjusted production was 661,484.
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
FOURTH-QUARTER PRODUCTION BY REGION 688 Mboe/d Australia
9%
2013 YEAR-END RESERVES BY REGION* 2.6 Bboe Argentina
Argentina
Australia
6%
3%
12%
North Sea
North Sea
Central
11%
14%
Central
12% 6%
Egypt
10%
Egypt
N.A. Onshore 51%
22%
19%
2%
GOM DW
Permian
35% Permian
17% 1% 0% GOM DW GOM Shelf
4%
14%
3%
Canada
GC Onshore
Canada GC Onshore
FOURTH-QUARTER PRODUCTION BY PRODUCT 688 Mboe/d
FOURTH-QUARTER REVENUE BY PRODUCT $3.7 Billion International Liquids $1.8 Bn
North American Liquids
International Liquids
North American Liquids $1.3 Bn
27% 48%
28%
35%
21% International Gas
24% 8% North American Gas
North America Onshore
International Gas $0.3 Bn
International & Offshore
3 *Includes non-controlling interest.
Liquids
9% North American Gas $0.3 Bn
Natural Gas
30%
19%
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT 21% 29%
ACTUAL 2009 VERSUS PRO FORMA 4Q 2013 PRODUCTION COMPARISON* ACTUAL 2009 583 Mboe/d Australia
7%
PRO FORMA FOURTH-QUARTER 2013 634 Mboe/d Australia
Argentina
8%
9%
Central
6%
North Sea
Argentina
7%
North Sea
11%
Central
15%
12%
9% Permian GC
3% Onshore
Egypt
26%
13%
N.A. Onshore 31%
N.A. Onshore 55%
16% Egypt
21%
Canada GOM Offshore
1%
Permian
14%
17% Canada GOM Shelf
ACTUAL 2009 PRODUCTION BY PRODUCT 583 Mboe/d International Liquids
International Gas
North American Liquids
International Liquids
24%
19%
21%
GC Onshore
PRO FORMA FOURTH-QUARTER 2013 PRODUCTION BY PRODUCT 634 Mboe/d
North American Liquids
31%
5%
31%
19%
29% International Gas
26%
North American Gas
North America Onshore
North American Gas
International & Offshore
Liquids
Natural Gas
4 *Pro forma represents fourth-quarter volumes less divested volumes from GOM Shelf, Canada and non-controlling interest in Egypt.
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
232
CENTRAL AND PERMIAN PRODUCTION: 4Q 2012 VS 4Q 2013 636
725 333 139 618
Total Production (Mboe/d)
240
15%
220 200
240
227
220
197
200
180 13%
160 140
Liquids Production (Mbbls/d)
134
180 Permian
118
160 140
120
120
100
100
80
80
60 40
18%
93
Central
79
20
40
118
151
Liquids
56%
50
NGLs
17%
101
Oil
32
86
20
0 % Liquids
60
27%
0 4Q 2012
4Q 2013
60%
66%
4Q 2012
4Q 2013
CENTRAL AND PERMIAN PRODUCTION: 2012 VS 2013
240
220
Total Production (Mboe/d) 218
200
29%
200
240
180
127
160 120
220 180
169
140
Permian
160 140
17%
108
100
80
80
60 20
49%
91
61
99
40
46
74
28%
95
0
2012
2013
58%
65%
2012
5
Liquids NGLs
24
60 Central
90%
141
20
0 % Liquids
43%
120
100
40
Liquids Production (Mbbls/d)
2013
Oil
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
NORTH AMERICA Permian
Fourth-quarter 2013 production in the Permian averaged a record 133,713 Boe/d (76 percent liquids), increasing 13 percent over the fourth quarter of 2012. The combination of downtime and pipeline outages caused from severe weather in the region partially offset new production from drilling. For the quarter, the Permian averaged 43 rigs, spud 242 gross wells (of which 83 were horizontal) and completed 289 gross (235 net) wells. During the year, the region maintained an active vertical program but also increased its horizontal rig count. Overall the company averaged 42 rigs, 19 of which were horizontal and completed 785 gross wells, 186 of which were horizontal. This impressive drilling program which spanned the basin added 18,728 Boe/d of production fueling 17% growth year-over-year. During 2013, the Permian replaced 323% of production through drilling activities and increased proved reserves by 14% to 910 MMBOE.
APACHE PERMIAN REGION ACREAGE AND KEY PLAYS
6
PERMIAN KEY STATS Fourth-Quarter 2013
Q4 Production: Q4 Wells: Q4 Rigs:
133,713 Boe/d 289 wells, 235 net Avg 43 rigs
Full-Year 2013 2013 Production: 127,066 Boe/d 2013 Wells: 785 wells, 615 net 2013 Rigs: Avg 42 rigs 2013 Production Replacement 323% Proved Reserves: 910 MMBoe
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued) WOLFCAMP SHALE
Apache has an estimated 460,000 gross acres (369,000 net) prospective for Wolfcamp Shale. The Barnhart area of Irion County remained a key component of Apache’s horizontal Wolfcamp program. During the quarter, six horizontal rigs drilled 22 Upper & Middle Wolfcamp laterals. 12 wells have been drilled to 1.5 mile lateral lengths targeting the Upper Wolfcamp and ten wells have been drilled to 1.5 mile lateral lengths targeting the Middle Wolfcamp. A new 3D seismic program is progressing and acquisition should start in the first quarter of 2014. As of December, the success of the Barnhart drilling program is now contributing ~10,000 Boe/d to the region.
CLINE SHALE
Apache has an estimated 640,000 gross acres (510,000 net) prospective for Cline Shale. 10 Lower Cline wells were drilled during the quarter while the inventory continues to grow.
MIDLAND BASIN VERTICAL
Apache has an estimated 950,000 gross acres (510,000 net) in the Midland Basin vertical play area. During the fourth quarter, Apache continued to focus on building inventory in the vertical Fusselman play, testing Fusselman field extensions in new structures. Continued refinement and interpretation of merged-3D is being used to help refine high rate of return prospects. During the fourth quarter, three notable Fusselman wells averaged approximately 333 Boe/d (85 percent oil) and two notable Wolfwood wells (from the southern area of the Deadwood core acreage) averaged approximately 300 Boe/d (84 percent oil). The Deadwood Plant continues to process at capacity and after an additional delivery point upgrade to increase capacity in the third quarter, no gas takeaway constraints were experienced.
CENTRAL BASIN PLATFORM (CBP)
Apache has an estimated 1.8 million gross acres (850,000 net) in the CBP. The Three Bar field had the second highest production increase for the fourth quarter growing 1,633 Boe/d, or 39% over the third quarter, 78% of which were liquids. Production from the field more than tripled year-over-year. By the end of the fourth quarter, the Three Bar Shallow Unit averaged total gross production of 5,400 Bo/d and 8,600 Mcf/d from 16 completed wells. Production optimization operations are focused on water handling, gas takeaway and pump placement.
NORTHWEST SHELF - YESO
Apache has approximately 115,000 gross acres (95,000 net) in the Yeso play. Three drilling rigs (two vertical and one horizontal) spud a total of 29 wells during the fourth quarter.
7
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Permian (Continued) DELAWARE BASIN
Apache has an estimated 550,000 gross acres (215,000 net) in the Delaware Basin. In the Pecos Bend area of Loving and Reeves Counties, Texas, a four-well new ventures testing program was successful and commercialized three horizontal target formations: the 2nd Bone Spring, 3rd Bone Spring, and Wolfcamp across Apache’s acreage. The level of rig activity was increased to three rigs during the fourth quarter and four more wells were spud during this time. The Chaparral 89 #101H began production on December 19th and recently reached a peak rate of 1,161 Boe/d from the Bone Springs.
PERMIAN WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
WELL NAME
Wolfcamp Shale Wolfcamp Shale
Scott Sugg 5051 East H61U Scott Sugg 5554 H43M
Wolfcamp Shale
COUNTY, ST
TVD
LATERAL
IP (Peak 24-Hour)
IP (30-Day)
Irion, TX
6,690’
7,455’
1,152 Boe/d
576 Boe/d
Irion, TX
7,142’
7,628’
1,078 Boe/d
570 Boe/d
Scott Sugg 5051 H33M
Irion, TX
7,082’
7,532’
798 Boe/d
673 Boe/d
Wolfcamp Shale
CC 3626 HM
Upton, TX
9,531’
5,835’
926 Boe/d
647 Boe/d
Wolfcamp Shale
Miller 36 #2 HU
Upton, TX
9,057’
4,877’
756 Boe/d
677 Boe/d
Wolfcamp Shale
Rocker B 1105 HL
Reagan, TX
8,705’
4,459’
843 Boe/d
416 Boe/d
Cline Shale
Greatwhite 44 #3H
Glasscock, TX
9,310‘
4,270’
956 Boe/d
389 Boe/d
Cline Shale
Ballenger 3142 #5H
Glasscock, TX
9,435‘
5,150’
827 Boe/d
344 Boe/d
Cline Shale
Rocker B 1106 HC
Reagan, TX
9,578‘
4,437’
763 Boe/d
343 Boe/d
Fusselman
Runner 17 #3
Glasscock, TX
10,205’
N/A
350 Boe/d
264 Boe/d
Wolfwood
Condor 48 #1
Glasscock, TX
10,571’
N/A’
405 Boe/d
361 Boe/d
Wichita Albany
Andrews, TX
7,066’
7,467’
818 Boe/d
586 Boe/d
Yeso
Three Bar Shallow Unit Tony#119H Fed #43
Eddy, NM
6,428’
N/A
308 Boe/d
256 Boe/d
3rd Bone Spring
Chaparral 89 #101H
Loving, TX
10,814‘
3,700’
1,161 Boe/d
500 Boe/d
8
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central
Fourth-quarter 2013 production in the Central Region was 93,153 Boe/d, up 18 percent over the fourth quarter of 2012 with liquids production increasing 57 percent to 49,022 Bo/d over the same time period. Liquids now constitute 53 percent of production (oil is 25%), up from only 39 percent in the fourth quarter of 2012. For the quarter, the Central Region averaged 25 drilling rigs and drilled 66 gross (51 net) wells. During 2013, the Central region replaced 195% of production through drilling activities and increased proved reserves by nearly 14% to 304 MMBoe.
CENTRAL KEY STATS Fourth-Quarter 2013
APACHE CENTRAL REGION ACREAGE AND KEY PLAYS
9
Q4 Production: Q4 Wells: Q4 Rigs:
93,153 Boe/d 66 wells, 51 net Avg 25 rigs
Full-Year 2013 2013 Production: 91,286 Boe/d 2013 Wells: 322 wells, 204 net 2013 Rigs: Avg 27 rigs 2013 Production Replacement 195% Proved Reserves: 304 MMBoe
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central (Continued) GRANITE WASH
Apache holds approximately 828,000 gross (418,000 net) acres prospective for the Granite Wash. During the quarter, Apache drilled and completed six gross Granite Wash wells. For the year, Apache drilled and completed 83 gross or 60 net wells in this play.
TONKAWA
Apache holds an estimated 810,000 gross (310,000 net) acres prospective for the Tonkawa. During the quarter, Apache completed 15 gross Tonkawa wells. For the year, Apache drilled and completed 95 gross or 58 net wells in this play. Apache continues to be a dominant player in the Tonkawa play, completing more wells in the formation than any other company.
CLEVELAND
Apache holds an estimated 768,000 gross (438,000 net) acres in the oil-rich Cleveland. During the quarter, Apache completed eight gross Cleveland wells. For the year, Apache drilled and completed 52 gross or 33 net wells in this play.
MARMATON
Apache holds an estimated 662,000 gross (512,000 net) acres in the Marmaton. During the quarter, Apache completed six gross Marmaton wells. For the year, Apache drilled and completed 24 gross or nine net wells in this play.
COTTAGE GROVE
Apache holds an estimated 238,000 gross (100,000 net) acres in the oil-rich Cottage Grove. During the quarter, Apache completed six gross Cottage Grove wells. For the year, Apache drilled and completed 26 gross or 18 net wells in this play.
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). During the quarter, Apache completed two gross Canyon Wash wells. For the year, Apache drilled 22 gross wells and completed 20 gross or 13 net wells in this play.
10
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Central (Continued) CENTRAL WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
COUNTY, ST
TMD
IP (30-Day)
Stiles 4 #21-4H PUD
Wheeler, TX
15,950’
1,630 Boe/d
Ellen 8# 12H
Hemphill, TX
16,400’
2,052 Boe/d
Stiles 18 #25-18H
Wheeler, TX
18,450’
1,130 Boe/d
Stiles 3 SL #27-3H
Wheeler, TX
17,900’
1,448 Boe/d
Bartz 19 #26-19H
Wheeler, TX
17,630’
1,006 Boe/d
Sweetwater
Stiles 68 #28-68H
Wheeler, TX
17,000’
956 Boe/d
Canyon Wash
Boys Ranch 116 #9
Oldham, TX
9,700’
1,257 Boe/d
Cottage Grove
Stiles 18A #18-18H
Wheeler, TX
15,600’
555 Boe/d
Cleveland
Hoover 216 #5H
Ochiltree, TX
12,200’
645 Boe/d
Tonkawa
Beavin 24-17-25 2H
Roger Mills, TX
13,000’
710 Boe/d
Granite Wash
WELL NAME
11
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf Coast Onshore
Fourth-quarter 2013 production averaged 30,421 Boe/d, down from GULF COAST 31,823 Boe/d in the third quarter, due to weather impacts in the ONSHORE KEY STATS Second Bayou, Golden Meadow, Main Pass 69 and Sabine Pass 24 Fourth-Quarter 2013 areas. Q4 Production: 30,421 Boe/d Q4 Wells: 5 wells, 5 net Oil and liquids production decreased 2 percent from the third-quarter Q4 Rigs: Avg 2 rigs 2013, but still managed a 3 percent increase over the fourth quarter of 2012. Full-Year 2013 2013 Production: 30,780 Boe/d Apache averaged two operated and two non-operated drilling rigs 2013 Wells: 43 wells, 36 net while completing a total of 5 gross (5 net) wells during the quarter. 2013 Rigs: Avg 2 rigs In the Golden Meadow Field, Apache completed and brought online the last of its 16 well 2013 drilling program. Gas production in the field increased 3 MMcf/d as a new 8” pipeline was completed to allow increased sales from the north part of the field.
APACHE GULF COAST ONSHORE REGION ACREAGE AND KEY PROJECTS
12
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Gulf of Mexico Offshore
Fourth-quarter 2013 production in the Gulf of Mexico Deepwater and Shelf was 9,167 Boe/d and 2,658 Boe/d, respectively. During the quarter, a second well was spud at MP 295 off structure to attempt to establish downdip limits and assess reserve size. Previously, the Fieldwood operated Heron well (MP 295 #1 BP) reached total depth and found over 100 feet of total pay (approximately 90 feet of oil pay) in several sands which were all full to base (8,400’ – 16,500’ TVD). In October 2013, Apache combined the Deepwater and Shelf Regions to form the Gulf of Mexico Offshore Region.
GOM DEEPWATER KEY STATS
During the quarter, installation of the Lucius spar hull was completed, with the 80,000 barrels of oil per day topsides expected to be towed to location in the first half of 2014. Lucius is progressing on schedule toward first oil production late in the second half of 2014 at 10,000 Boe/d net to Apaches interest.
HEIDELBERG (12.5% APA)
Full-Year 2013 2013 Production: 11,515 Boe/d 2013 Wells: 4 wells, 1.5 net 2013 Rigs: Avg 1 rigs
GOM SHELF KEY STATS*
LUCIUS DEVELOPMENT (11.7% APA)
Fourth-Quarter 2013 Q4 Production: 9,167 Boe/d Q4 Wells: 1 wells, .75 net Q4 Rigs: Avg 1 rig
Fourth-Quarter 2013 Q4 Production: 2,658 Boe/d Q4 Wells: 2 wells, 1.1 net Q4 Non-Operated Rigs: Avg 4 rig Full-Year 2013 2013 Production: 71,062 Boe/d 2013 Wells: 22 wells, 15 net 2013 Rigs: Avg 4 rigs
Construction on the Lucius look-a-like Heidelberg spar is more than 70 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 REGION ACREAGE AND KEY ASSETS
13 *Full-year statistics combine Apache’s operated performance before the sale of Gulf of Mexico Shelf properties and non-operated performance after the sale, while fourth-quarter statistics only reflect Apache’s remaining interet in the non-operated Gulf of Mexico Shelf properties.
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada
Fourth-quarter 2013 production in Canada, which includes Kitimat CANADA KEY STATS upstream production, was 93,199 Boe/d. Fourth-Quarter 2013 Total liquids production averaged 24,413 Bbls/d for the year, up 11 percent Q4 Production: 93,199 Boe/d from 2012 volumes of 22,088 Bbls/d. Q4 Wells: 30 wells, 24 net During the quarter, the region drilled two successful Montney horizontal Q4 Rigs: Avg 10 rig wells in the Kaybob area, with an average 30-day initial production rate of Full-Year 2013 5.4 MMscf/d and 49 Bo/d of liquids. 2013 Production: 107,332 Boe/d During the fourth quarter, Apache completed the sale of its Hatton, St. Lina, 2013 Wells: 143 wells, 116 net Marten Hills, Snipe Lake, Valhalla, and a portion of its Hawkeye producing 2013 Rigs: Avg 8 rigs 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.
APACHE CANADA REGION ACREAGE AND KEY ASSETS
14
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada (Continued) CANADA WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
TVD
Lateral Length
IP (% Gas)
00/04-28-058-19W5
7,833’
4,147’
1,029 Boe/d (66%)
00/09-20-058-18W5
7,548’
4,203’
983 Boe/d* (73%)
00/13-19-058-18W5
7,559’
4,078’
1,029 Boe/d* (73%)
Dunvegan
00/13-29-060-20W5
5,810’
4,455’
409 Boe/d* (52%)
Montney
02/01-13-059-21W5
8,619’
4,058’
990 Boe/d (95%)
Glauconite
00/13-19-041-05W5
7,646’
4,931’
840 Boe/d* (78%)
Bluesky
WELL NAME
* Less than 30 day rate
15
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Canada (Continued) KITIMAT LNG PROJECT (50% APA)
During the fourth quarter, Kitimat Upstream gross production in the Horn River and Liard Basins averaged 158 MMcf/d (63 MMcf/d net to Apache’s interest), down 9 percent from third quarter 2013 due mainly to significant third party processing plant downtime issues in the fourth quarter. During 2013, the Kitimat upstream drilling program increased the OGIP for Liard by successfully drilling two new wells which extended the northern boundary of the play. One drilling rig was active on the 77-A Tenure well, which is expected to reach TD of 17,257 feet in the first-quarter 2014. Operations started on the 2013/2014 winter 3D seismic programs in the fourth quarter, with a 515 square mile acquisition expected to be completed by early second-quarter 2014.
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
16
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
INTERNATIONAL EGYPT KEY STATS
Egypt
Fourth-Quarter 2013*
In Egypt, Apache’s operations continue uninterrupted. Q4 Gross Production: 357,098 Boe/d Fourth quarter gross oil production was 204,089 Bo/d Oil: 204,089 Bo/d Gas: 918,056 Mcf/d and gross gas production was 918 MMcf/d, for a total of Q4 Wells: 71 well, 69 net 357,098 Boe/d. Q4 Rigs: Avg 27 rigs Increased oil production occurred at Razzak and Full-Year 2013 Kalabsha as a result of a number of new high-rate wells 2013 Gross Production: 349,702 Boe/d coming on stream. Other core areas slightly increased or Oil: 197,622 Bo/d remained flat due to infield drilling and water flood Gas: 912,478 Mcf/d pressure maintenance. 2013 Wells: 210 well, 198 net Apache averaged 27 rigs in the fourth quarter and 2013 Rigs: Avg 26 rigs drilled a total of 71 gross (69 net) wells. Based on new field discoveries in the North Tarek and Khalda Offset concessions, Apache has applied for two additional development leases expected to be approved in 2014. Three recently approved leases brought the number of applications approved during 2013 to 20. The leases approved in 2013 converted 66,000 acres of short-term exploration acreage into 20- to 25-year term development leases. Apache currently has 119 development leases that cover almost 2 million acres. New field discoveries include: The Apries-1X, located in the Khalda Offset Concession within the Shushan Basin, tested 4,389 barrels of oil and 14.2 million cubic feet (MMcf) of gas per day from Paleozoic Basur sand. The well encountered 87 feet of net pay in the Basur. The NTRK-H-1X, located in the North Tarek Concession within the Matruh Basin, tested 20 MMcf of gas and 250 barrels of condensate per day from 60 feet of fracture-stimulated Jurassic Lower Safa pay. The well was a follow-up to the previously announced NTRK-G-1X Upper Safa discovery. Apache also reported the first well of a multi-well horizontal drilling program in the Western Desert, the AG-115H in the Abu Gharadig Field, was drilled, completed and is currently producing. During December, the Khalda JV well produced an average of 1,681 barrels of oil and 3 MMcf of gas per day from a 1,970-foot lateral of horizontal section within a 20 foot oil zone in the Abu Roash D limestone. The AG-115H was one of eight wells initiated during 2013 to test horizontal drilling technology to increase recoveries in tight conventional and unconventional reservoirs. Additional horizontal drilling is planned in the Abu Gharadig and surrounding fields in 2014. During the quarter, the previously-announced transaction with Sinopec International Petroleum Exploration and Production Corporation closed and Apache began reporting a noncontrolling interest.
*Includes non-controlling interest.
17
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt (Continued) EGYPT WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
WELL NAME
TMD
IP
Abu Roash D Lime (Hz)
AG 115H
11,740’
1,681 Bo/d, 3,100 Mcf/d
Lower Safa
SIWA 2L2
15,400’
3,725 Bo/d
Lower Bahariya
WRZK 117
6,613’
1,700 Bo/d
Alam El Buieb 3E
SHAMS 15
13,800’
1,440 Bo/d
Safa
WKAL N4
15,000’
1,790 Bo/d
Alam El Buieb 01
NRZK 11
8,670’
1,870 Bo/d
Abu Roash G Dolomite
MRZK 78 (R)
8,500’
680 Bo/d
Lower Bahariya
WRZK 39 (R)
5,670’
1,210 Bo/d
Alam El Buieb 3D
WKAL A4 (R)
13,600’
680 Bo/d
APACHE EGYPT REGION ACREAGE AND KEY BASINS
18
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Egypt (Continued) EGYPT PRODUCTION DETAIL 4Q 2013
3Q 2013
Oil (MBbls/d)
Gas (Mcf/d)
Oil (MBbls/d)
Gas (Mcf/d)
204,089
918,056
193,869
915,965
Apache Share
74,133
287,179
89,294
350,504
Noncontrolling Interest
15,521
65,437
-
-
Total Net Production With Tax
89,654
352,616
89,294
350,504
43.9%
38.4%
46.1%
38.3%
Apache Share
54,415
220,295
62,780
251,979
Noncontrolling Interest
11,393
50,197
-
-
65,808
270,492
62,780
251,979
32.2%
29.5%
32.4%
27.5%
Gross Production Net Production With Tax:
% of Gross Net Production Without Tax:
Total Net Production Without Tax % of Gross
19
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Australia
Fourth-quarter 2013 production was 59,236 Boe/d, up 9 percent from the third quarter of 2013, due to additional gas sales from Devil Creek and Macedon. During the fourth quarter, the region operated one semi-submersible drilling rig and drilled three gross (one net) wells. During the year, 12 gross (six net) wells were drilled. Apache farmed into the Coastal and Acacia-Desert Blocks of the Canning Basin gaining exposure to this relatively under-explored onshore area in northwest Australia.
APACHE AUSTRALIA REGION ACREAGE AND KEY PROJECTS
20
AUSTRALIA KEY STATS
Fourth-Quarter 2013 Q4 Production: 59,236 Boe/d Q4 Wells: 3 wells, 1.2 net Q4 Rigs: Avg 1 rig Full-Year 2013 2013 Production: 56,568 Boe/d 2013 Wells: 12 wells, 6 net 2013 Rigs: Avg 2 rigs
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Australia (Continued) MACEDON (28.57% APA)
Commenced production on August 16, 2013. Production net to Apache was 55 MMcf/d at end of December 2013. Production in 2014 has ranged from 30-40 MMcf/d net in line with market demand.
BALNAVES (65% APA)
The four well Balnaves development drilling program was completed during the fourth quarter. Also during the quarter, the riser and moorings for the FPSO were installed along with the subsea manifold and production flowlines. The FPSO and facilities remain on track for start-up in the third quarter of 2014.
CONISTON (52.5% APA)
Development drilling re-commenced in December and the first of 17 laterals was drilled in January. As planned, the Ningaloo Vision FPSO disconnected from the mooring at year-end and sailed to Singapore for facility upgrades. The final phase of subsea installation work to increase flowline capacity is planned for the first quarter of 2014. The project remains on schedule for first production in the third quarter of 2014.
JULIMAR (65% APA) / WHEATSTONE LNG (13% APA)
Construction is near 25 percent complete. All platform topsides decks are structurally complete and the steel gravity substructure has left the dry dock for planned quayside works. At the LNG Plant site, the first permanent compressor foundations have been installed and plant piling work continues. At Julimar, rock berm placement for the pipeline crossings was completed and the pipeline bend initiators were installed. The project is 45 percent complete.
UPPER PYRENEES /MOONDYNE (28.57% APA)
Four of the six wells in this add-on development to Pyrenees were drilled/completed by the end of December 2013 and tie in operations are in progress. Three wells were on stream at the end of January 2014 and the combined initial rate from these is in excess of 20,000 Bo/d gross.
CANNING BASIN (ONSHORE EXPLORATION)
Apache entered an agreement with Buru and Mitsubishi to farm in to two areas in the onshore Canning Basin in November 2013. This is an early stage exploration agreement where Apache has agreed to examine opportunities for further development with the Canning joint venture. The arrangement is subject to registration with the local State Government authority.
21
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
North Sea
Fourth-quarter 2013 production in the North Sea was 75,212 Boe/d, up 13 percent from the third quarter of 2013 due to a successful drilling program and recovered volumes from third quarter turnarounds. During the fourth quarter, the region operated an average of five drilling rigs and drilled four gross (three net) wells. From the Beryl Alpha platform, the XSP horizontal well was successfully drilled and encountered 688 feet of net oil pay along the wellbore. This well came online in December and achieved an initial 30-day production rate of 7,500 Bo/d and 2.8 MMcf/d. The Beryl Bravo B75 well was also brought online in December and achieved an initial 30-day production rate of 3,740 Bo/d and 6.5 MMcf/d The Forties Alpha Satellite Platform (“FASP”) commissioning is 99% complete with only the first oil systems remaining. The FASP is expected to be fully operational in the first quarter of 2014 with drilling expected to commence in the second quarter.
NORTH SEA KEY STATS
Fourth-Quarter 2013 Q4 Production: 75,212 Boe/d Q4 Wells: 4 wells, 3.2 net Q4 Rigs: Avg 4 rigs Full-Year 2013 2013 Production: 73,487 Boe/d 2013 Wells: 19 wells, 14 net 2013 Rigs: Avg 4 rigs
APACHE NORTH SEA REGION ACREAGE AND KEY PROJECTS
NORTH SEA WELL HIGHLIGHTS Fourth-Quarter 2013
PLAY/TARGET
WELL NAME
IP
Cormorant
A86
7,500 Bo/d, 2.8 MMcf/d
Linnhe / Beryl
B75
3,740 Bo/d, 6.5 MMcf/d
Delta reservoir
FB4-1
2,100 Bo/d
UMS reservoir
FD5-1
2,700 Bo/d
22
4TH QUARTER & FULL-YEAR 2013 EARNINGS RELEASE OPERATIONS SUPPLEMENT
Argentina
ARGENTINA KEY STATS Fourth-quarter 2013 production in Argentina was 42,729 Boe/d, flat Fourth-Quarter 2013 versus the third quarter of 2013. Q4 Production: 42,729 Boe/d Total “Gas Plus” sales averaged 105 MMcf/d in the fourth quarter, with Q4 Wells: 9 wells, 8 net nearly 100 percent of these volumes sold at a “Gas Plus” price of $4.93 Q4 Rigs: Avg 1 rig per Mcf. Full-Year 2013 During the quarter, the region operated one rig and drilled nine gross 2013 Production: 42,709 Boe/d (eight net) wells, all located in the Neuquén Basin. 2013 Wells: 28 wells, 24 net A 10 well shallow (
