Profile: Apco Oil & Gas International Inc. (APAGF.O)

Apco Oil & Gas International Inc., formerly Apco Argentina Inc., is an international oil and gas exploration and production (E&P) company. As of December 31, 2008, Apco had interests in seven oil and gas producing concessions and one exploration permits in Argentina. Apco is active in four of the five producing basins in the country. The Company’s assets are located in the Neuquén basin in the provinces of Río Negro and Neuquén in southwestern Argentina, where Apco has participated in a joint venture in the Entre Lomas concession. In addition to its direct working interests in the Entre Lomas, Bajada del Palo, and Agua Amarga areas, Apco Argentina Inc. and its subsidiaries owns a 40.803% equity interest in Petrolera Entre Lomas S.A. (Petrolera) who holds a 73.15% direct working interest in the areas. On a total Company consolidated basis, Apco Argentina Inc. owns an effective 40.724% of Petrolera. Consequently, the Company’s combined direct working interest and equity interest in the three areas totals 52.79%. During the year ended December 31, 2008, the Company’s net daily production, including direct working interests and equity interests averaged 7,790 barrels (Bbls) of oil and plant products, and 18,395 thousand cubic feet (Mcf) of gas, or 10,856 barrels of oil equivalent (BOE).

NEUQUÉN BASIN PROPERTIES

The Company participates in a joint venture with Entre Lomas S.A. (Petrolera) and Petrobras Energia S.A. (Petrobras Energia), formerly Pecom Energia S.A. (Pecom Energia). The purpose of the joint venture is the exploration and development of the Entre Lomas oil and gas concession in the provinces of Rio Negro and Neuquen in southwest Argentina. In addition to its direct participation interest, Apco owns an effective 29.79% equity interest in the three areas through its stock ownership in Petrolera that holds a 73.15% direct interest in each of the properties. The Company’s 23% direct participation interest combined with its 29.79% equity interest gives Apco an effective 52.79% interest in all three properties. The Entre Lomas concession is located about 950 miles southwest of the city of Buenos Aires on the eastern slopes of the Andes Mountains. The concession covers a surface area of approximately 183,000 acres and produces oil and gas from seven fields, primarily from the Charco Bayo/Piedras Blancas field (CB/PB). It also produces oil and gas from the Quintuco and the Punta Rosada formations (also known as the Petrolifera).

The Bajada del Palo concession has a total surface area of approximately 111,000 acres. It is located in the province of Neuquén immediately to the southwest of the Entre Lomas concession and to the northwest of the Agua Amarga exploration area. The primary target formations in Bajada del Palo are the same as those that have been developed and produced in Entre Lomas.

The Agua Amarga property is located in the province of Rio Negro, and is adjacent and to the southeast of the Entre Lomas concession. It has a total surface area of 378 square kilometres, or approximately 95,000 acres. As of December 31, 2008, the remaining value of the work commitment to be completed in the area is estimated to be $1.3 million net to its direct working interest.

NORTHWEST BASIN PROPERTIES

The Company owns a 1.5% participation interest in the Acambuco concession located in the province of Salta in northwest Argentina on the border with Bolivia. The Acambuco concession covers an area of 294,000 acres. There are two producing fields in this concession, the San Pedrito and Macueta fields that produce primarily from the Huamampampa formation. The Acambuco joint venture consists of Pan American Energy Investments L.L.C. (PAE), an affiliate of British Petroleum PLC, which holds 52%, Oil & Gas Development Ltd., an affiliate of Shell C.A.P.S.A., and YPF S.A., each of which hold 22.5% interests, and Northwest Argentina Corporation and the Company, each of which hold interests of 1.5%.

AUSTRAL BASIN PROPERTIES

The Company owns a 25.78% direct working interest in a joint venture engaged in E&P activities in three concessions located on the island of Tierra del Fuego. The Austral basin extends both onshore and offshore from the provinces of Santa Cruz to Tierra del Fuego. The principal producing formation is the Springhill sandstone. The concessions cover a total surface area of 467,089 gross acres, or 120,135 acres net to the Company’s interest. Each of the concessions extends three kilometers offshore with their eastern boundaries paralleling the coastline. The joint venture that participates in the TDF concessions consists of a subsidiary of the Company, Apco Austral, S.A., that holds a 25.78% interest, Antrim Argentina S.A., an affiliate of Antrim Energy, Inc. that holds 25.78% interest, ROCH S.A., that holds 20.29% interest, SECRA S.A. that holds 4% interest, San Enrique Petrolera S.A. that holds 12.61% interest, and DPG S.A. that holds 11.54% interest. ROCH S.A. is the operator of the concessions.

The Río Cullen concession covers 87,006 gross acres in the northern part of the island of Tierra del Fuego. The concession produces limited volumes from a few wells that produce natural gas and condensate. The Cañadón Alfa field located offshore and immediately to the north and east of the Río Cullen. The Las Violetas concession covers 276,969 gross acres and is on the Argentine side of the island of Tierra del Fuego. The concession has nine natural gas and condensate fields including the Los Patos, Los Flamencos, Las Violetas, and San Luis fields. The Río Chico field produces oil from the Springhill. Propane and butane is extracted in the San Luis liquefied petroleum gas (LPG) plant located in the concession. The concession is located adjacent to the San Sebastián field, another of Argentina’s largest gas fields. The Angostura concession covers 103,115 gross acres on the strip of land between the coast of the San Sebastián Bay and the border between Argentina and Chile.

SAN JORGE BASIN PROPERTIES

The Company holds an 81.82% participation interest and operates the Cañadón Ramirez concession located in the province of Chubut in southern Argentina. In an area of mutual interest covering the western half of the concession, the Company holds a 42% interest, ROCH S.A., an Argentine company, holds 9% interest, and CanAmericas Energy (CanAmericas) holds a 49% interest. The concession produces hydrocarbons from the San Jorge basin.