Apache's Spar-2 Appraisal Offshore Western Australia Tests 58 MMcf, 950 Barrels of Condensate Per Day

HOUSTON, Nov. 24, 2010 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) said today that the Spar-2 appraisal well in Permit WA-4-R offshore Western Australia tested 58 million cubic feet (MMcf) of natural gas and 950 barrels of condensate per day.

Apache's Australia subsidiary plans to bring gas from the Spar Field and nearby Halyard Field to Western Australia's domestic gas market via an existing Apache-operated pipeline 10 miles southeast of Spar-2 and through the Varanus Island processing and transportation hub.

First production from Halyard of approximately 50 MMcf per day (gross) is expected in the second half of 2011 with Spar following in late-2012 as additional capacity becomes available at Varanus Island.

Apache owns a 55-percent interest in both WA-4-R and adjacent Permit WA-13-L, where Halyard is located. Santos owns the remaining interests.

Spar-2 was completed over a perforated interval of 131 feet (40 meters) within 163 feet (50 m) of high-quality gas pay in a single zone at the top of the Barrow Group formation. The appraisal is located about one mile (1.6 kilometers) to the southwest of the Halyard-1 discovery and approximately 18 miles (29 km) southwest of Apache's John Brookes platform.

"The thickness and quality of the reservoir sandstone and high flow rates are a very positive result for Apache, for Santos and – ultimately – for Western Australia," said Thomas M. Maher, vice president and managing director of Apache's Australia Region. "The proximity to Apache's existing infrastructure will reduce the time and expense required to develop the project and deliver needed gas supplies to the growing Western Australia market."

The Halyard-1 discovery, drilled in 2008, test-flowed at a peak rate of 68 MMcf of gas and 936 barrels of condensate per day from 91 feet (28 m)of net pay in the Cretaceous Halyard sandstone.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates, investor information and all press releases on its website, www.apachecorp.com.

Forward-Looking Statements

This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and a number of factors could cause actual results to differ materially from those expressed in the forward-looking statements including Apache's ability to successfully drill, complete, test and produce the wells and prospects identified in this news release. We assume no duty to update these statements as of any future date. However, readers should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.

APA-AU

SOURCE Apache Corporation

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