HOUSTON, Aug. 5, 1997 — Apache Corporation (NYSE: APA) and Western Geophysical have entered into a technology alliance to jointly design, conduct and process seismic surveys on Apache acreage around the world, while applying Western's considerable research and development (R&D) capabilities to seismic problem-solving.

Apache President and Chief Operating Officer G. Steven Farris and Western Geophysical President Richard C. White have signed an informal agreement forging a much closer working relationship between the two companies.

"This goes much deeper than simply hiring a contractor to do a job for us," says Farris. "Under the alliance, we're forming Apache-Western employee teams to work on all aspects of a seismic operation, and through Western's $50 million R&D program, we'll have direct access to new technology and geoscience expertise heretofore available only to the majors through their in-house operations."

"This is an ideal situation as far as Western Geophysical is concerned," White says. "Relationships count. The better we get to know Apache and where they operate, the better we'll be able to perform for them, which should translate into more business for Western Geophysical."

The first project to be undertaken by the alliance is a comprehensive analysis of acquisition and processing parameters in Egypt's Western Desert, where Apache has extensive operations and is the largest leaseholder in the country, with interests in 28 million acres.

"The quality of existing 3-D seismic data in Egypt is average to poor in some areas where a basalt layer makes it difficult to 'see' beneath the surface," according to Mike Fleming, area geophysicist for Europe, Africa and the Middle East, who is coordinating the project for Western Geophysical. "To address this problem, we're conducting a 40-square-mile pilot 3-D survey on Apache's Qarun Concession. Once we find the solution, we'll apply it to Apache 3-D shoots throughout the Western Desert."

Apache's Chief Geophysicist Mike Bahorich, says the Western Desert project is the highest priority of the Apache-Western alliance because of its bottom-line impact.

"Egypt has tremendous potential as a commercial oil and gas province and is very important to Apache's future. We have 13 rigs working there and have had a string of discoveries that are beginning to make people sit up and take notice. Better 3-D seismic will enable us to pick up the pace." He said Apache has committed 40 percent of its 1997 geophysical budget to Egypt.

Fleming says the Qarun pilot program will be completed this fall; 3-D acquisition throughout the Western Desert will run into 1998. Another joint project involves 3-D acquisition design and processing on Apache's Zhao Dong block in Bohai Bay, People's Republic of China.

"We just formed the alliance and already we're off and running," Bahorich says. "We're looking forward to a long and prosperous relationship."

Western Geophysical is a division of Western Atlas International, Inc., a wholly owned subsidiary of Western Atlas Inc. (NYSE: WAI).