Gulf of Mexico regions

Our Gulf Coast assets are primarily located in and along the Gulf of Mexico (GOM), in the areas onshore and offshore Texas, Louisiana, Alabama, and Mississippi. The area is divided into three regions, which include the GOM Shelf, GOM Deepwater, and Gulf Coast Onshore.

In the GOM Shelf Region, Apache is currently the largest producer and has been the largest offshore held-by-production acreage owner since 2004, holding approximately three million gross acres. The region contributed 12 percent of our worldwide production and revenue during 2012 and drilled or participated in 36 wells with an 80-percent success rate, consistent with activity levels of the prior two years.

The GOM Deepwater Region contributed only two percent of Apache’s worldwide production in 2012; however, there are several large projects and developments underway that could spur significant growth. After drilling two wells in 2011, we drilled five wells in 2012 with a 60-percent success rate. Seven wells are planned for drilling in the areas in which we hold an interest during 2013.

Apache’s Gulf Coast Onshore Region has a significant acreage position of approximately 1.4 million gross acres, including 330,000 mineral fee acres. The region drilled or participated in drilling 35 wells during 2012 and plans to drill or participate in approximately 39 wells in 2013.

FIRST-QUARTER 2013 UPDATE

GULF COAST ONSHORE

• First-quarter 2013 production in the Gulf Coast Onshore Region was 29,859 barrels of oil equivalent (Boe) per day, essentially flat compared to the fourth quarter of 2012.
• Gas production increased from the fourth quarter of 2012 due to increasing gross gas sales at Atchafalaya Bay Field from 140 million cubic feet per day (MMcfd) to 155 MMcfd. This was partially offset by compressor downtime at Main Pass 69 and freezing issues in various fields.
• During the quarter, Apache averaged three drilling rigs in the region drilling a total of 10 gross (nine net) wells with a 90 percent success rate.

GOM Shelf

• First-quarter 2013 production in the GOM Shelf was 92,024 Boe per day, a 4-percent decline from the fourth quarter of 2012.
• During the quarter, Apache averaged five rigs and drilled a total of six operated wells.
• Apache and Energy XXI formed a joint venture over approximately 100 blocks in the Main Pass Concession (APA 75-percent working interest) which will target sub-salt exploration / exploitation.
• Wide Azimuth and Short Cable seismic acquisitions will enhance imaging to aid the exploration / exploitation of the new joint venture sub-salt play.

GOM Deepwater

• First-quarter 2013 production in the GOM Deepwater was 13,311 Boe per day, a 26 percent decline from the fourth quarter of 2012.
• The Apache-operated Staurolite well, targeting the Lower Pleistocene oil objective, spud during mid-March and is expected to reach total depth of 21,000 feet during the second quarter of 2013.
• Apache was the apparent high bidder on five blocks during the March 2013 OCS Sale – 227.

LUCIUS DEVELOPMENT

• During the first quarter, a development well was drilled and tested on the eastern flank of the field.
• Two additional development wells are scheduled to be drilled in 2013 before the rig will begin completion activities in the field.
• First production is anticipated in the second half of 2014.

HEIDELBERG

• During the first quarter, fabrication of the spar began, which will be an Lucius look-a-like facility with 80,000 barrels of oil equivalent per day .
• Initial production is expected in 2016.