Profile: Apache Corporation (APA.N)

Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. In North America, the Company’s exploration and production interests are focused in the Gulf of Mexico, the Gulf Coast, East Texas, the Permian basin, the Anadarko basin and the Western Sedimentary basin of Canada. Outside of North America, it has exploration and production interests onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea, and onshore Argentina. The Company also has exploration interests on the Chilean side of the island of Tierra del Fuego. The Company holds interests in many of its United States, Canadian, and other international properties through subsidiaries, including Apache Canada Ltd., DEK Energy Company (DEKALB), Apache Energy Limited (AEL), Apache North America, Inc. and Apache Overseas, Inc.

United States

The Gulf Coast region comprises Apache’s interests in and along the Gulf of Mexico, in the areas on and offshore Louisiana and Texas. During the year ended December 31, 2008, the region contributed approximately 22% of the Company’s production and approximately 25% of its revenues and, held approximately 14% of its estimated proved reserves. The Company drilled 116 wells, 90 of which were completed as producers, and performed 358 workover and recompletions. At Ewing Banks 826, it completed four wells, during 2008. The Central region includes assets in East Texas, the Permian basin of West Texas and New Mexico and the Anadarko basin of western Oklahoma and the Texas Panhandle.

Canada

In the Company’s Canadian region, the Company has 4.9 million net acres across the provinces of British Columbia, Alberta and Saskatchewan. During 2008, the Company drilled 484 wells in Canada, with 471 completed as producers. It performed 531 workover and recompletion projects. Its Canadian crude oil is sold to refiners, integrated oil companies and marketers.

Egypt

During 2008, the Egypt region contributed 22% of Apache’s production revenue, 21% of total production, and 14% of total estimated proved reserves. During 2008, Apache had an active drilling program in Egypt, completing 236 of 260 wells, and conducted 701 workovers and recompletions. In Egypt, the Company’s operations are conducted pursuant to production sharing contracts, under which the contractor partner pays all operating and capital expenditure costs for exploration and development. Oil from the Khalda Concession, the Qarun Concession and other nearby Western Desert blocks is sold directly to Egyptian General Petroleum Corporation (EGPC) or other third parties. Oil sales are made either directly into the Egyptian oil pipeline grid, exported or sold at one of two terminals on the northern coast of Egypt or sold to non-governmental third parties, including the Middle East Oil Refinery located in northern Egypt.

Australia

In Australia, the Company’s exploration activity is focused in the offshore Carnarvon, Gippsland and Browse basins, where Apache holds 5.2 million net acres in 34 exploration permits, 11 production licenses and five retention leases. Production operations are concentrated in the Carnarvon and Exmouth basins, the location of Apache’s 11 production licenses, all of which are Apache operated. During 2008, the Company’s Van Gogh and Pyrenees projects in the Exmouth basin were under development.

North Sea

During 2008, the North Sea region produced 21.9 million barrels of oil equivalent (MMboe). It drilled 14 wells in the North Sea, during 2008, 12 of which were producers. During 2008, production averaged 59,494 b/d. The 2008 annual maintenance shut down on the Charlie platform impacted the field by 1,330 barrels/day.

Argentina

During 2008, the Company’s Argentina region drilled 83 wells, 72 of which were productive. The Company produced 17.5 MMboe, during 2008. In December 2008, the Mendoza Province granted Apache an exploration permit for CCyB Block 17B in the Cuyo basin. The Company also completed a nearly 2,500 square kilometer three-dimensional (3-D) seismic mega shoot in Tierra del Fuego.

Chile

In November 2007, Apache was awarded exploration rights on two blocks comprising one million net acres in Tierra del Fuego. This acreage is adjacent to the Company’s 552,000 net acres on the Argentine side of the island of Tierra del Fuego, and the additional acreage represents a natural extension of its expanding exploration and production operations.