Since entering the Canadian market in 1995, Apache Canada Ltd. has grown into one of the country’s top oil and gas producers.
Apache holds approximately seven million gross acres across the provinces of British Columbia, Alberta, and Saskatchewan. The region’s large acreage position provides portfolio diversification as well as significant drilling opportunity. Canada represented approximately 19 percent of Apache’s worldwide proved reserves at year-end 2012 and approximately 16 percent of 2012 worldwide production.
In 2012, Apache drilled or participated in drilling 169 wells in Canada, with a continued focus on increasing oil and liquids-rich gas production. Reservoir modeling and state-of-the-art horizontal drilling technology advanced several oil plays in the Viking, Glauconite, Dunvegan, and Sparky formations, and success with multi-stage fracture completions continues to increase the scope of oil and liquids-rich gas drilling opportunities.
Drilling in 2013 will continue to focus on conventional oil and liquids-rich gas plays.
Third-Quarter 2013 Update
- Third-quarter 2013 production in Canada, which includes Kitimat upstream production, was 113,819 barrels of oil equivalent (Boe) per day, up 2 percent from the second quarter of 2013.
- Total liquids production remained steady, averaging 25,585 barrels (Bbls) per day, up slightly from second-quarter 2013 volumes of 25,259 Bbls per day.
- 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 million cubic feet per day (MMcfd) and 247 Bbls per day 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 MMcfd and 679 Bbls per day. 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.
KITIMAT LNG PROJECT
- During the third quarter, Kitimat Upstream gross production in the Horn River and Liard Basins averaged 176 MMcfd (68.2 MMcfd 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.
- Apache has a 50-percent interest in the Kitimat LNG Project
Apache Canada Ltd. is proud to support the communities in which we work. Apache develops resources essential to economic growth and improved living standards. Along this path, we build enduring relationships with the communities in which we operate through our commitments to environmental stewardship, sustainable development, education and civic improvement.
Apache’s corporate giving program is region-based and employee-driven. In each of our communities, Apache employee committees determine which programs and projects will receive Apache funding.
The same sense of urgency, commitment and dedication that drives Apache’s operational progress is apparent in our employees’ participation in their communities through their involvement with their children’s education, participation in youth activities and support for local charities and community institutions.