|Oil production (Bpd)||134,123|
|Natural gas production (Mcfd)||854,099|
|Natural gas liquids production (Bpd)||33,527|
|Proved reserves (Mboe)||1,424,286|
|Gross well drilled/productive||1,052/1,035|
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.