Central region

The Central Region includes more than 3,500 producing wells primarily in western Oklahoma and the Texas panhandle and controls nearly 1.9 million gross acres. The region is Apache’s first core area dating back over half a century and has historically grown through low-risk, highly predictable natural gas exploitation. Over the last three years, however, a transformation from vertical to horizontal drilling and continued price disparity between crude oil and natural gas have evolved the region from one targeting natural gas to one now targeting oil and liquids-rich gas plays. This focus resulted in liquids production growth of over 115 percent during 2011. Oil and liquids production further expanded during 2012, with oil production more than doubling and natural gas liquids (NGL) production almost tripling compared to the prior year. Total region production was up 37 percent in 2012. The Central Region contributed eight percent of Apache’s 2012 equivalent production and nine percent of total year-end proved reserves.

The primary driver of the region’s growth was an active exploration and development program where we drilled or participated in drilling 192 wells during 2012, 99 percent of which were completed as producers. Our drilling momentum in the Central Region was further bolstered in April when the company completed the acquisition of Cordillera, a privately held company with approximately 312,000 net acres in the heart of the Anadarko basin, nearly 18,000 barrels of oil equivalent (Boe) of production, and estimated proved reserves of 70 million barrels of oil equivalent (MMboe). The acquisition doubled Apache’s acreage in the Granite Wash area and added a robust drilling inventory that was immediately integrated into our existing program.

The region operated an average of 18 drilling rigs during 2012 and, with a growing portfolio of drilling opportunities, plans to run an average of 29 rigs during 2013.

FIRST-QUARTER 2013 UPDATE

• First-quarter 2013 production in the Central Region was 86,215 barrels of oil equivalent (Boe) per day, up 9 percent over the fourth quarter of 2012 and up 129 percent over the first quarter of 2012.
• Total liquids production increased 28 percent to 40,000 barrels per day (Bpd), (46 percent of total production) over the fourth quarter of 2012 and up 301 percent over first quarter of 2012.
• For the quarter, the Central Region averaged 25 drilling rigs and drilled 78 gross (43 net) wells.
• Apache continues to work numerous plays across its 1.9 million gross acreage position focusing on the liquids-rich Granite Wash and the oily Tonkawa, Marmaton, Cottage Grove, Cleveland and Canyon Wash plays.
• Apache holds approximately 720,000 gross (350,000 net) acres prospective for the Granite Wash with an
  estimated resource potential of 4.5 billion Boe from 22,800 drilling locations.
• First-quarter 2013 production in the Granite Wash was 28,129 Boe per day (44 percent liquids).
• During the quarter, Apache drilled and completed 25 gross (19 net) Granite Wash wells, for a total of 495 gross
  (217 net) wells now on production in the play.

TONKAWA

• Apache holds an estimated 634,000 gross (310,000 net) acres prospective for the Tonkawa with an estimated resource potential of 202 million barrels of oil equivalent (MMboe) from 2,800 drilling locations.
• First-quarter 2013 production in the Tonkawa was 8,330 Boe per day (74 percent liquids).
• During the quarter, Apache drilled and completed 22 gross (9 net) Tonkawa wells, for a total of 380 gross (156 net)
  wells now on production in the play.

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.
• First-quarter 2013 production in the Marmaton was 12,042 Boe per day (47 percent liquids).
• During the quarter, Apache drilled and completed six gross (two net) Marmaton wells, for a total of 123 gross (56 net) wells now on production in the play.

CLEVELAND

• Apache holds an estimated 527,000 gross (268,000 net) acres in the oil-rich Cleveland play with an estimated resource potential of 195 MMboe from 2,302 drilling locations.
• First-quarter 2013 production in the Cleveland was 3,328 Boe per day (68 percent total liquids / 53 percent oil).
• During the quarter, Apache drilled and completed 12 gross (6 net) Cleveland wells, for a total of 188 gross (72 net) wells now on production in the play.

COTTAGE GROVE

• First-quarter 2013 production in the Cottage Grove was 3,512 Boe per day (83 percent liquids / 71 percent oil).
• During the quarter, Apache drilled and completed seven gross (four net) Cottage Grove wells, for a total of 36 gross (19 net) wells now on production in the play.

CANYON WASH

• Apache holds an estimated 141,000 gross (93,000 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.
• First-quarter 2013 production in the Canyon Wash was 3,846 Boe per day (69 percent liquids / 59 percent oil).
• During the quarter, Apache drilled and completed six gross (three net) Canyon Wash wells, for a total of 19 gross (11 net) wells now on production in the play.