Apache to Sell 50 MMcf Per Day for $5 Per MMBtu Through Argentina's Gas Plus Program

Apache to Sell 50 MMcf Per Day for $5 Per MMBtu Through Argentina's Gas Plus
Program

HOUSTON, Oct. 5 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq:
APA) today announced government approvals of new contracts to supply 50
million cubic feet (MMcf) of natural gas per day from two fields in
Argentina's Neuquen and Rio Negro provinces at a price of $5 per million
British thermal units (MMBtu).

"The new contracts - the first approved by the secretary of energy under the
government's Gas Plus program - are examples of Argentine government policies
that will encourage development of tight and unconventional natural gas
reservoirs and bring new supplies of much needed energy to market," said Jon
Graham, president of Apache Argentina.

During the second quarter, Apache produced 193 MMcf of gas per day in
Argentina at an average price of $1.89 per Mcf, including sales to regulated
residential and power generation markets as well as deregulated industrial
markets. Regulators recently approved price increases in the residential and
power generation sectors.

The Gas Plus contracts will commence in January 2011, although the customer -
a power plant operator - has indicated it may begin taking gas in mid-2010.

To fulfill the contract, Apache is planning to drill up to 12 wells to tap
deep unconventional natural gas reservoirs in the Anticlinal Campamento field
in the Neuquen Basin - a complex geologic setting which requires drilling
highly deviated wellbores completed with multiple hydraulic fracture
stimulations. At the Estacion Fernandez Oro field in Rio Negro province,
Apache is planning to drill up to 36 wells, each with multiple hydraulic
fracture stimulations, to develop the low-permeability Lower Lajas sandstone
formation at a depth of 12,500 feet. Apache will provide measurement and
production facilities for the Gas Plus volumes separate from the rest of the
fields' production facilities.

"These reserves would not be developed without the incentives of the Gas Plus
program," Graham said. "Apache has submitted five additional development
projects for approval under Gas Plus."

Apache Corporation is a large oil and gas independent with operations in the
United States, Canada, the United Kingdom sector of the North Sea, Egypt,
Australia and Argentina.

This news release contains certain "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995 including, without limitation, expectations, beliefs, plans
and objectives regarding production and exploration activities. Any matters
that are not historical facts are forward-looking and, accordingly, involve
estimates, assumptions, risks and uncertainties, including, without
limitation, risks, uncertainties and other factors discussed in our most
recently filed Annual Report on Form 10-K, on our Web site and in our other
public filings and press releases. There is no assurance that Apache's
expectations will be realized, and actual results may differ materially from
those expressed in the forward-looking statements. We assume no duty to update
these statements as of any future date.

APA-AR

SOURCE Apache Corporation

Bob Dye, +1-713-296-6662, or Investors, Tom Chambers, +1-713-296-6685, both of
Apache Corporation