September 30, 2011 at 00:30 AM EDT
Apache to Develop Balnaves Oil Field Offshore Western Australia
Projected peak production of 30,000 barrels/day; first oil through fpso due in 2014

HOUSTON, Sept. 30, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) said today that its subsidiary Apache Julimar Pty Ltd will proceed with development of the Balnaves oil field in Production License WA-49-L offshore Western Australia.

The field was discovered by Apache in 2009 during exploration and appraisal drilling in the Julimar-Brunello complex. Balnaves is a light, sweet oil accumulation in a separate reservoir in the Triassic Mungaroo formation, located adjacent to the large gas reservoirs of the Brunello gas field.

First production from the $438-million development is scheduled in 2014, with gross peak production of approximately 30,000 barrels of oil per day and estimated gross recoverable resource of 17 million barrels of oil and 30 billion cubic feet of gas.  Two horizontal production wells will be connected to a floating production, storage and offloading (FPSO) vessel via subsea tiebacks. One water injection well will be used to maintain reservoir pressure. Gas will be reinjected into another reservoir for later production as part of the Wheatstone liquefied natural gas (LNG) Project.

Apache has agreed to lease the Armada Claire, an FPSO owned by Bumi Armada with production capability of 80,000 barrels of oil and 50 million cubic feet of natural gas per day and storage capacity for 750,000 barrels.

"We are pleased to sanction our third operated oil development in Australia since 2007," said Thomas M. Maher, Apache's region vice president and managing director in Australia. "With the Van Gogh field on production and first output from Coniston expected in 2013, Balnaves will add to our position as one of Australia's leading oil producers."

The Julimar and Brunello fields are large gas discoveries that will be developed to provide gas for the Wheatstone LNG Project, operated by Chevron Australia Pty Ltd. Apache Julimar Pty Ltd is operator of the Julimar Development Project, the WA-49-L upstream component of the Wheatstone Project.

Apache Julimar Pty Ltd has a 65-percent interest in offshore license WA-49-L and a 13-percent equity interest in the Wheatstone project. KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of Kuwait Foreign Petroleum Exploration Co. k.s.c., owns the remaining interest in the offshore license and a 7-percent interest in the Wheatstone project.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. From time to time, Apache posts announcements, updates and investor information, in addition to copies of all press releases, on its website, www.apachecorp.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.  These include statements about planned drilling activity, future production, and exploration prospects in the Balnaves oil field, offshore Western Australia.  While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations.  See "Risk Factors" in our 2010 Form 10-K as amended by Amendment No. 1 to our annual report on Form 10-K/A filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business.  Any forward-looking statement made by us in this news release speaks only as of the date on which it is made.  Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.  We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

APA-AU

SOURCE Apache Corporation

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