HOUSTON, Nov. 28 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE:APA) said today that it has been awarded rights to explore the Lenga and Rusfin blocks on the island of Tierra del Fuego in the Chilean government's Magallanes Basin bid round.
Located along Chile's border with Argentina, the two blocks add 1 million acres adjacent to Apache's 714,000 acres and extensive exploration and production operations on the Argentinean side of the island. Current net production from the Argentina blocks is 4,200 barrels of liquid hydrocarbons and 113 million cubic feet of gas per day.
Apache will operate both of the Chilean blocks with a 50-percent interest in Lenga and a 100-percent interest in Rusfin. Empresa Nacional del Petroleo (ENAP), Chile's national oil company, will hold the remaining interest in the Lenga Block. The Rusfin Block comprises 865,735 exploration acres and the Lenga Block totals 337,402 exploration acres. Apache has committed to acquire 232 square miles (600 square kilometers) of three-dimensional seismic and drill two exploration wells, for a combined investment of US $18.3 million during the first phase of the exploration period.
"Apache's entry into Chile adds to our drilling opportunities with 1 million acres in a known hydrocarbon province in a stable governmental and economic regime," said G. Steven Farris, Apache's president and chief executive officer. "Given the proximity to our Tierra del Fuego operations, these blocks represent a natural extension of our expanding exploration and production operations and knowledge base.
"We welcome the opportunity to work in Chile, and we hope to become a meaningful contributor to the nation's energy supply over time," Farris said.
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.
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 2006 Form 10-K and on our Web site. 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.
Source: Apache Corporation