Overview

Apache's oil and gas assets are in the provinces of Neuquén, Rio Negro and Tierra del Fuego. We have interests in 24 concessions covering over 3.1 million gross acres (2.8 million net), with expiration dates generally greater than 10 years and subject to extensions.

In 2009, the Argentina region produced 16.6 million barrels of oil equivalent (MMboe), drilled 29.6 net wells (32 gross) and performed 57 additional capital projects. These programs added an estimated 14.4 MMboe in reserves and brought total reserves in Argentina to an estimated 119 MMboe at Dec. 31, 2009, or 5 percent of our estimated worldwide total.

Neuquén basin

In March 2009, the province of Neuquén and Apache reached agreement to extend eight federal oil and gas concessions for 10 additional years. The concessions, which were scheduled to expire between 2015 and 2017, encompass approximately 590,000 net acres, including exploratory areas totaling 514,000 net acres. Neuquén operations generate about half of Apache’s total output in Argentina.

Gas Plus

Apache received technical and commercial approval during 2009 from the government of Argentina for four Gas Plus projects and technical approval for two additional Gas Plus projects designed to encourage new supplies through development of tight sands and unconventional gas reserves. Under the Gas Plus program, Apache has the opportunity to supply 10 million cubic feet per day (MMcfd) from fields in the Neuquén Province at a price of $4.10 per million British thermal units (MMBtu) beginning January 2010 for an initial one-year term. Apache also has signed a letter of intent for a contract to supply up to 50 MMcfd from fields in the Neuquén and Rio Negro provinces for $5 per MMBtu beginning January 2011.

Cuyo basin

Apache is currently awaiting Mendoza Province’s approval for the extension of CCyB Block 17A, which is anticipated in the first half of 2010. Together, the two Mendoza Province blocks comprise about 1.2 million acres. Approximately 505 square kilometers of three-dimentional (3-D) seismic is scheduled to be acquired in 2010 using new cableless technology, which was introduced in Argentina. A drilling campaign in the Cuyo Basin is also scheduled to commence in mid-2010. With the addition of the Mendoza acreage, Apache will hold oil and gas assets in three of the main Argentine hydrocarbon basins: Neuquén, Austral and Cuyo.

Austral basin, Tierra del Fuego (Argentina and Chile)

Activity during 2009 with our Tierra del Fuego assets in the Austral basin included nine discoveries, several facility projects and a fracture stimulation campaign involving 10 wells. 

Apache has exploration rights on two blocks comprising approximately one million net acres on the Chilean side of Tierra del Fuego, which is adjacent to our 552,000 net acres on the Argentine side of the island of Tierra del Fuego and represents a natural extension of our exploration and production operations. In January 2009, a 3-D seismic survey totaling 1,000 square kilometers was completed.  In November 2009, the first of a three-well exploration program commenced drilling. Two of the wells reached total depth by year-end 2009, with drilling completed on the third well in early 2010. Currently a completion rig is conducting testing and completion efforts on the three wells.