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Apache Reports Record 2009 Production of 583,000 boe Per Day, Up 9%

Adjusted earnings total $1.9 billion or $5.59 per share

HOUSTON, Feb. 18 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that international growth fueled record 2009 production of 583,000 barrels of oil equivalent per day, up 9 percent from 2008.

"Although we reduced capital expenditures by about 40 percent from 2008 levels to achieve our goal of living within our cash flow, Apache increased production by 9 percent and ended 2009 with $2 billion in cash," said G. Steven Farris, Apache's chairman and chief executive officer. "In 2010, we anticipate continued growth of 5 to 10 percent as we ramp up drilling activity across our portfolio and commence production from earlier discoveries."

"We are off to a fast start in 2010, with eight consecutive successful wells in the Gulf of Mexico and first oil production from our Van Gogh Field discovery in Western Australia," Farris said. "Our portfolio is balanced in terms of geology, geography and commodity mix, and each of our regions has critical mass of highly prospective acreage, much of which is held by production.

"Apache's balanced portfolio drove cash flow in 2009 as oil prices recovered," he said. "While oil and natural gas liquids comprised 50 percent of Apache's output, they provided 72 percent of revenues. We also shaved 20 percent off of our per-equivalent-barrel lifting costs."

Apache reported fourth-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, more than doubled to $664 million or $1.96 per diluted common share from $276 million or 82 cents per share in the prior-year period. For the year ending Dec. 31, Apache reported adjusted earnings of $1.9 billion or $5.59 per share compared with $3.8 billion or $11.22 per share in 2008.

Using generally accepted accounting principles (GAAP), Apache reported fourth-quarter net income of $583 million or $1.72 per share compared with a net loss of $2.9 billion, or $8.80 per share in the prior-year period. The year-earlier results included a $3.6-billion, non-cash, after-tax reduction in the carrying value of oil and gas properties stemming from significantly lower commodity prices. For the year ending Dec. 31, Apache reported a net loss of $292 million or 87 cents per share, which included a $1.98-billion, non-cash, after-tax reduction which was the result of lower commodity prices at the beginning of 2009. Apache reported net income of $706 million or $2.09 per share in 2008.

"We plan to continue to allocate capital based on our projected cash flow," Farris said. "However, we have ample liquidity from our cash balances and committed credit facilities to pursue incremental opportunities, either through additional exploration or value-adding acquisitions."

Drivers for 2010 growth include:

  • Production from Van Gogh as well as from Pyrenees, a second oil development in Australia expected to commence production in the first half;
  • Increased activity in the Granite Wash play in Western Oklahoma and the Texas Panhandle;
  • Year-round activity at the Horn River Basin shale play in British Columbia, and
  • Continued exploration and development in Egypt, including new processing capacity that will increase oil production from earlier discoveries in the Faghur Basin.

Cash from operations before changes in operating assets and liabilities* totaled $5 billion in 2009, down from $7.4 billion in 2008. Fourth-quarter cash from operations totaled $1.4 billion, up from $1.1 billion in the prior-year period.

"Cash flow came in ahead of our initial projections, which enabled Apache to invest $4.1 billion in total capital, including facilities capital and $300 million in tactical acquisitions, and end the year with slightly more cash on the balance sheet," Farris said. "Right now, we plan to spend in the range of $6 billion to $6.5 billion on exploration and development, to be reviewed quarterly."

Apache ended 2009 with proved reserves of 2.37 billion barrels of oil equivalent. The company added 216 million barrels of oil equivalent (MMboe) through discoveries, extensions and acquisitions but excluding price-related downward revisions. Apache's 2009 production was 213 MMboe. Apache spent $3.455 billion of exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*

In 2009, Apache's international production increased 21 percent. Net production in Egypt increased 38 percent as a result of additional gas and condensate processing capacity at the Qasr field and from the Phiops oil discovery in the Faghur Basin. In Australia, production increased 40 percent as output was restored at Varanus Island after the June 2008 explosion; production currently exceeds pre-incident levels. The North Sea Region recorded its second consecutive year of production growth.

Apache's North American production declined slightly in 2009 as a result of curtailed drilling activity.

Fourth-quarter production increased 14 percent from the prior-year period to 589,799 boe per day.

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 Web site, www.apachecorp.com.

*Adjusted earnings, cash from operations before changes in operating assets and liabilities, and exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest, are non-GAAP measures. Please see reconciliations below. For supplemental and non-GAAP information, please go to http://www.apachecorp.com/financialinfo.

NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2009 results at 1 p.m. Central Time on Thursday, Feb. 18. The call will be webcast from Apache's Web site, www.apachecorp.com. The webcast replay and podcast will be archived on Apache's Web site. The conference call will be available for delayed playback by telephone for one week beginning at approximately 3 p.m. on Feb. 18. To access the telephone playback, dial (719) 457-0820 and provide Apache's confirmation code, 4305154.

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.

                                APACHE CORPORATION                           
                              FINANCIAL INFORMATION                          
                      (In thousands, except per share data)                  
                                                                             
                                                                             
                                                                             
                                For the Quarter            For the Year      
                               Ended December 31,       Ended December 31,   
                               ------------------       ------------------   
                               2009         2008        2009         2008 
                               ----         ----        ----         ---- 

    REVENUES AND OTHER:                                                      
      Oil and gas                                                            
       production revenues  $2,570,264   $1,876,890  $8,573,927  $12,327,839 
      Other                    (15,072)      60,044      40,899       61,911 
                               -------       ------      ------       ------ 
                             2,555,192    1,936,934   8,614,826   12,389,750 
                             ---------    ---------   ---------   ---------- 
                                                                             
    COSTS AND EXPENSES:                                                      
      Depreciation,
       depletion
       and amortization                               
          Recurring            615,189      667,393   2,395,063    2,516,437 
          Additional                 -    5,333,821   2,818,161    5,333,821 
      Asset retirement                                                       
       obligation accretion     25,541       24,202     104,815      101,348 
      Lease operating                                                        
       expenses                413,843      520,083   1,662,140    1,909,625 
      Gathering and                                                          
       transportation           39,649       33,373     142,699      156,491 
      Taxes other than                                                       
       income                  192,225      139,401     579,436      984,807 
      General and                                                            
       administrative           85,440       69,938     343,883      288,794 
      Financing costs, net      60,812       49,441     242,238      166,035 
                                ------       ------     -------      ------- 
                             1,432,699    6,837,652   8,288,435   11,457,358 
                             ---------    ---------   ---------   ---------- 
                                                                             
    INCOME (LOSS) BEFORE                                                     
     INCOME TAXES            1,122,493   (4,900,718)    326,391      932,392 
      Current income tax                                                     
       provision  (benefit)    358,728      (39,259)    841,899    1,456,382 
      Deferred income tax                                                    
       provision (benefit)     177,959   (1,915,846)   (231,110)  (1,235,944)
                               -------   ----------    --------   ---------- 
                                                                             
    NET INCOME (LOSS)          585,806   (2,945,613)   (284,398)     711,954 
      Preferred stock                                                        
       dividends                 3,034        1,420       7,294        5,680 
                                 -----        -----       -----        ----- 
                                                                             
    INCOME (LOSS)                                                            
     ATTRIBUTABLE TO COMMON                                                  
     STOCK                    $582,772  $(2,947,033)  $(291,692)    $706,274 
                              ========  ===========   =========     ======== 
                                                                             
    NET INCOME (LOSS) PER
     COMMON SHARE:                                      
      Basic                      $1.73       $(8.80)     $(0.87)       $2.11 
                                 =====       ======      ======        ===== 
      Diluted                    $1.72       $(8.80)     $(0.87)       $2.09 
                                 =====       ======      ======        ===== 
                                                                             
    WEIGHTED AVERAGE                                                         
     COMMON SHARES                                                           
     OUTSTANDING               336,489      334,967     335,852      334,351 
                               =======      =======     =======      ======= 
                                                                             
    DILUTED SHARES                                                           
     OUTSTANDING               338,605      334,967     335,852      337,191 
                               =======      =======     =======      ======= 



                                APACHE CORPORATION                           
                              FINANCIAL INFORMATION                          
                                  (In thousands)                             
                                                                             
                                                                             
                                      For the Quarter        For the Year    
                                     Ended December 31,   Ended December 31, 
                                     ------------------   ------------------ 
                                        2009       2008       2009       2008
                                        ----       ----       ----       ----
    COSTS INCURRED: (1)                                                      
      North America exploration                                              
       and development              $326,729   $912,016 $1,629,141 $3,417,275
      International exploration                                              
       and development               481,873    663,119  1,869,072  2,595,376
      Oil and gas property                                                   
       acquisitions                   52,129          -    310,472    149,517
                                      ------        ---    -------    -------
                                    $860,731 $1,575,135 $3,808,685 $6,162,168
                                    ======== ========== ========== ==========


                                                                             
    (1) Includes noncash asset retirement costs and capitalized interest as
        follows:   

        Capitalized interest         $15,228    $19,823    $60,553    $73,553
        Asset retirement costs       $71,476   $163,519   $292,939   $513,891



                                                  
                                                     December 31, December 31,
                                                         2009         2008
                                                         ----         ----
                                                  
    BALANCE SHEET DATA:                                                       
      Cash and Cash Equivalents                        $2,048,117   $1,181,450
      Short-term Investments                                    -      791,999
      Other Current Assets                              2,537,732    2,477,525
      Property and Equipment, net                      22,900,615   23,958,517
      Restricted Cash                                           -       13,880
      Goodwill                                            189,252      189,252
      Other Assets                                        510,027      573,862
                                                          -------      -------
      Total Assets                                    $28,185,743  $29,186,485
                                                      ===========  ===========
                                                                              
      Short-term Debt                                    $117,326     $112,598
      Other Current Liabilities                         2,275,232    2,407,837
      Long-Term Debt                                    4,950,390    4,808,975
      Deferred Credits and Other Noncurrent 
       Liabilities                                      5,064,174    5,348,354
      Shareholders' Equity                             15,778,621   16,508,721
                                                       ----------   ----------
      Total Liabilities and Shareholders' Equity      $28,185,743  $29,186,485
                                                      ===========  ===========
                                                                              
      Common shares outstanding at end of period          336,437      334,710



                          APACHE CORPORATION                      
                         FINANCIAL INFORMATION                    
                                                                  
                                                                  
                                   For the Quarter       For the Year   
                                  Ended December 31,   Ended December 31,
                                  ------------------   ------------------
                                    2009      2008       2009      2008
                                    ----      ----       ----      ----
                                                                  
    PRODUCTION DATA:                                              
      OIL VOLUME - Barrels per day                                
      Gulf Coast                    54,665    39,928    51,757    51,142
      Central                       38,325    38,478    37,376    38,655
                                    ------    ------    ------    ------
        United States               92,990    78,406    89,133    89,797
      Canada                        13,998    16,877    15,186    17,154
                                    ------    ------    ------    ------
        North America              106,988    95,283   104,319   106,951
                                   -------    ------   -------   -------
      Egypt                         95,970    74,705    92,139    66,753
      Australia                      9,918     8,140     9,779     8,249
      North Sea                     56,443    61,740    60,984    59,494
      Argentina                     10,632    12,610    11,505    12,409
                                    ------    ------    ------    ------
        International              172,963   157,195   174,407   146,905
                                   -------   -------   -------   -------
          Total                    279,951   252,478   278,726   253,856
                                   =======   =======   =======   =======
                                                                  
      NATURAL GAS VOLUME - Mcf per
       day                            
      Gulf Coast                   386,679   267,730   366,565   374,528
      Central                      301,892   314,899   299,519   305,348
                                   -------   -------   -------   -------
        United States              688,571   582,629   666,084   679,876
      Canada                       334,526   343,489   359,235   352,731
                                   -------   -------   -------   -------
        North America            1,023,097   926,118 1,025,319 1,032,607
                                 ---------   ------- --------- ---------
      Egypt                        382,780   290,292   362,618   263,711
      Australia                    204,860   117,387   183,617   123,003
      North Sea                      2,502     2,737     2,703     2,637
      Argentina                    170,474   202,782   184,557   195,651
                                   -------   -------   -------   -------
        International              760,616   613,198   733,495   585,002
                                   -------   -------   -------   -------
          Total                  1,783,713 1,539,316 1,758,814 1,617,609
                                 ========= ========= ========= =========
                                                                  
      NGL VOLUME - Barrels per
       day                                
      Gulf Coast                     5,030     2,370     4,332     4,365
      Central                        2,066     1,682     1,804     1,621
                                     -----     -----     -----     -----
        United States                7,096     4,052     6,136     5,986
      Canada                         2,029     2,165     2,089     2,076
                                     -----     -----     -----     -----
        North America                9,125     6,217     8,225     8,062
      Argentina                      3,439     2,914     3,241     2,887
                                     -----     -----     -----     -----
          Total                     12,564     9,131    11,466    10,949
                                    ======     =====    ======    ======
                                                                  
      BOE per day                                                 
      Gulf Coast                   124,141    86,919   117,183   117,930
      Central                       90,706    92,643    89,101    91,167
                                    ------    ------    ------    ------
        United States              214,847   179,562   206,284   209,097
      Canada                        71,782    76,290    77,147    78,018
                                    ------    ------    ------    ------
        North America              286,629   255,852   283,431   287,115
                                   -------   -------   -------   -------
      Egypt                        159,766   123,087   152,575   110,704
      Australia                     44,061    27,705    40,382    28,750
      North Sea                     56,860    62,196    61,435    59,934
      Argentina                     42,483    49,322    45,505    47,904
                                    ------    ------    ------    ------
        International              303,170   262,310   299,897   247,292
                                   -------   -------   -------   -------
          Total                    589,799   518,162   583,328   534,407
                                   =======   =======   =======   =======



                              APACHE CORPORATION                
                            FINANCIAL INFORMATION               
                                                       
                                                       
                                          For the                  
                                          Quarter     For the Year 
                                           Ended          Ended    
                                        December 31,  December 31,
                                        ------------  -------------
                                        2009   2008   2009    2008
                                        ----   ----   ----    ----
                                                       
    PRICING DATA:                                      
      AVERAGE OIL PRICE PER BARREL                     
      Gulf Coast                       $74.39 $53.96 $60.22 $103.35
      Central                           68.29  52.86  54.15   89.04
        United States (1)               70.75  56.03  59.06   83.70
      Canada                            70.10  49.18  56.16   93.53
        North America (1)               70.66  54.81  58.64   85.28
      Egypt                             74.46  43.74  61.34   91.37
      Australia                         80.97  30.89  64.42   91.78
      North Sea                         74.82  55.17  60.91   95.76
      Argentina                         56.41  51.47  49.42   49.46
        International                   73.84  48.19  60.58   89.63
          Total (1)                     72.63  50.69  59.85   87.80
                                                       
      AVERAGE NATURAL GAS PRICE PER MCF                
      Gulf Coast                        $4.46  $6.95  $4.14   $9.77
      Central                            4.88   4.55   3.93    8.13
        United States (1)                4.92   6.01   4.34    8.86
      Canada (1)                         4.60   5.84   4.17    7.94
        North America (1)                4.81   5.95   4.28    8.55
      Egypt                              3.50   4.13   3.70    5.25
      Australia                          2.34   1.86   1.99    2.10
      North Sea                         18.07  10.02  13.15   18.78
      Argentina                          2.09   1.85   1.96    1.61
        International                    2.92   2.97   2.87    3.43
          Total (1)                      4.00   4.76   3.69    6.70
                                                       
      AVERAGE NGL PRICE PER BARREL                     
      Gulf Coast                       $44.61 $36.58 $33.92  $61.30
      Central                           39.45  20.70  30.87   51.39
        United States                   43.11  29.99  33.02   58.62
      Canada                            33.28  23.18  25.54   49.33
        North America                   40.92  27.62  31.12   56.23
      Argentina                         25.95  34.96  18.76   37.83
          Total                         36.82  29.96  27.63   51.38
                                                       
                                                       
    (1)  Prices reflect the impact of financial derivative hedging activities.



                             APACHE CORPORATION                        
                           FINANCIAL INFORMATION                       
                   (In thousands, except per share data)               
                                                                       
    NON-GAAP FINANCIAL MEASURES:                                       
                                                                       
    Reconciliation of income attributable to common stock to adjusted
    earnings: 

    The press release discusses Apache's adjusted earnings.  Adjusted earnings
    exclude certain items that management believes affect the comparability of
    operating results and are meaningful for the following reasons: 

        --  Management uses adjusted earnings to evaluate the company's
            operational trends and performance relative to other oil and gas
            producing companies.

        --  Management believes this presentation may be useful to investors
            who follow the practice of some industry analysts who adjust
            reported company earnings for items that may obscure underlying
            fundamentals and trends.      

        --  The reconciling items below are the types of items management
            believes are frequently excluded by analysts when evaluating the
            operating trends and comparability of the company's results.
                                                                       
                                                                       
                                 For the Quarter           For the Year      
                                Ended December 31,      Ended December 31,   
                                ------------------      ------------------   
                                 2009         2008       2009        2008 
                                 ----         ----       ----        ---- 
                                                                       
    Income (Loss)                                                      
     Attributable to Common
     Stock (GAAP)              $582,772  $(2,947,033)  $(291,692)   $706,274 
                                                                       
    Adjustments:                                                       
        Foreign currency 
         fluctuation impact on 
         deferred tax expense    81,551     (272,206)    197,724    (397,454)
        Additional depletion,
         net of tax                   -    3,647,745   1,981,398   3,647,745 
        Out-of-period tax
         adjustments                  -     (152,170)          -    (173,795)
                                    ---     --------         ---    -------- 
    Adjusted Earnings
     (Non-GAAP)                $664,323     $276,336  $1,887,430  $3,782,770 
                               ========     ========  ==========  ========== 
                                                                       
    Adjusted Earnings Per
     Share (Non-GAAP)                             
      Basic                       $1.97        $0.82       $5.62      $11.31 
                                  =====        =====       =====      ====== 
      Diluted                     $1.96        $0.82       $5.59      $11.22 
                                  =====        =====       =====      ====== 
                                                                       
    Average Number of Common
     Shares                                     
      Basic                     336,489      334,967     335,852     334,351 
                                =======      =======     =======     ======= 
      Diluted                   338,605      336,986     337,737     337,191 
                                =======      =======     =======     ======= 



    Reconciliation of net cash provided by operating activities to cash from
    operations before changes in operating assets and liabilities: 

    The press release discusses Apache's cash from operations before changes
    in operating assets and liabilities.  It is presented because management
    believes the information is useful for investors because it is used
    internally and widely accepted by those following the oil and gas industry
    as a financial indicator of a company's ability to generate cash to
    internally fund exploration and development activities, fund dividend
    programs, and service debt.  It is also used by research analysts to value
    and compare oil and gas exploration and production companies, and is
    frequently included in published research when providing investment
    recommendations.  Cash from operations before changes in operating assets
    and liabilities, therefore, is an additional measure of liquidity, but is
    not a measure of financial performance under GAAP and should not be
    considered as an alternative to cash flows from operating, investing, or
    financing activities. 

    The following table reconciles net cash provided by operating activities
    to cash from operations before changes in operating assets and
    liabilities. 
                                                                       
                                 For the Quarter           For the Year      
                                Ended December 31,      Ended December 31,
                                ------------------      ------------------
                                2009         2008        2009        2008 
                                ----         ----        ----        ---- 
    Net cash provided by
     operating activities    $1,544,172   $1,036,776  $4,223,643  $7,065,344 
    Changes in operating
     assets and liabilities     (97,593)      52,230     761,499     311,676 
                                -------       ------     -------     ------- 
    Cash from operations
     before changes in                             
     operating assets and                                                  
     liabilities             $1,446,579   $1,089,006  $4,985,142  $7,377,020 
                             ==========   ==========  ==========  ========== 



                                APACHE CORPORATION
                           OIL & GAS RESERVE INFORMATION
                       For the Year Ended December 31, 2009

    OIL (Mbbl)

                         U.S.         Canada        Egypt         Australia
                         ----         ------        -----         ---------
    Balance -Dec 31,
     2008              476,689       144,443       114,406          76,535
      Extensions and
       Discoveries      20,555           432        41,104           3,574
      Purchases          9,969             -             -               -
      Revisions         12,976        (4,246)       (6,286)          1,901
      Production       (32,534)       (5,543)      (33,631)         (3,569)
      Sales                  -             -             -               - 
                           ---           ---           ---             ---
    Balance -Dec 31,
     2009              487,655       135,086       115,593          78,441
                       =======       =======       =======          ======

    NGL's (Mbbl)

                         U.S.         Canada        Egypt         Australia
                         ----         ------        -----         ---------
    Balance -Dec 31,
     2008               38,075        11,302             -               - 
      Extensions and
       Discoveries      (2,913)        1,407             -               -
      Purchases          3,054             -             -               -
      Revisions              5          (258)            -               - 
      Production        (2,239)         (763)            -               -
      Sales                  -             -             -               - 
                           ---           ---           ---             ---
    Balance -Dec 31,
     2009               35,982        11,688             -               -
                        ======        ======           ===             ===

    Oil & NGL's

                         U.S.         Canada        Egypt         Australia
                         ----         ------        -----         ---------
    Balance -Dec 31,
     2008              514,764       155,745       114,406          76,535
      Extensions and
       Discoveries      17,642         1,839        41,104           3,574
      Purchases         13,023             -             -               -
      Revisions         12,981        (4,504)       (6,286)          1,901
      Production       (34,773)       (6,306)      (33,631)         (3,569)
      Sales                  -             -             -               - 
                           ---           ---           ---             ---
    Balance -Dec 31,
     2009              523,637       146,774       115,593          78,441
                       =======       =======       =======          ======

    GAS (MMcf)

                         U.S.         Canada        Egypt         Australia
                         ----         ------        -----         ---------
    Balance -Dec 31,
     2008            2,537,182     2,203,361     1,370,978       1,253,545
      Extensions and
       Discoveries     150,668       340,278         2,142         174,883
      Purchases         47,782            35             -               -
      Revisions        (54,591)     (107,205)      (81,623)             33
      Production      (243,120)     (131,121)     (132,356)        (67,020)
      Sales                  -             -             -               - 
                           ---           ---           ---             ---
    Balance -Dec 31,
     2009            2,437,921     2,305,348     1,159,141       1,361,441
                     =========     =========     =========       =========


    TOTAL BOE (Mboe)

                         U.S.         Canada        Egypt         Australia
                         ----         ------        -----         ---------
    Balance -Dec 31,
     2008              937,628       522,972       342,902         285,459
      Extensions and
       Discoveries      42,754        58,552        41,461          32,721
      Purchases         20,987             6             -               -
      Revisions          3,883       (22,373)      (19,890)          1,907
      Production       (75,294)      (28,160)      (55,690)        (14,739)
      Sales                  -             -             -               - 
                           ---           ---           ---             ---
    Balance -Dec 31,
     2009              929,958       530,997       308,783         305,348
                       =======       =======       =======         =======


    Net Change          (7,670)        8,025       (34,119)         19,889
                        ======       =======       =======         =======

    2009 BOE
     Percentage           39.3%         22.4%         13.1%           12.9%
                          ====          ====          ====            ====

    2009 Production
     Percentage           35.4%         13.2%         26.2%            6.9%
                          ====          ====          ====             ===

    Production (BOE)
      Oil + NGL's         46.2%         22.4%         60.4%           24.2%
      Gas                 53.8%         77.6%         39.6%           75.8%
                          ----          ----          ----            ----
                         100.0%        100.0%        100.0%          100.0%
                         =====         =====         =====           =====



    OIL (Mbbl)

                                 North Sea       Argentina      Total
                                 ---------       ---------      -----
    Balance -Dec 31, 2008         187,915         24,193     1,024,181
      Extensions and Discoveries    6,056          3,728        75,449
      Purchases                         -              -         9,969
      Revisions                         2           (202)        4,145
      Production                  (22,259)        (4,199)     (101,735)
      Sales                             -              -             -
                                      ---            ---           ---
    Balance -Dec 31, 2009         171,714         23,520     1,012,009
                                  =======         ======     =========

    NGL's (Mbbl)

                                 North Sea       Argentina      Total
                                 ---------       ---------      -----
    Balance -Dec 31, 2008               -          7,586        56,963
      Extensions and Discoveries        -          1,137          (369)
      Purchases                         -              -         3,054
      Revisions                         -             29          (224)
      Production                        -         (1,183)       (4,185)
      Sales                             -              -             -
                                      ---            ---           ---
    Balance -Dec 31, 2009               -          7,569        55,239
                                      ===          =====        ======

    Oil & NGL's

                                 North Sea       Argentina      Total
                                 ---------       ---------      -----
    Balance -Dec 31, 2008         187,915         31,779     1,081,144
      Extensions and Discoveries    6,056          4,865        75,080
      Purchases                         -              -        13,023
      Revisions                         2           (173)        3,921
      Production                  (22,259)        (5,382)     (105,920)
      Sales                             -              -             -
                                      ---            ---           ---
    Balance -Dec 31, 2009         171,714         31,089     1,067,248
                                  =======         ======     =========

    GAS (MMcf)

                                 North Sea       Argentina      Total
                                 ---------       ---------      -----
    Balance -Dec 31, 2008           5,585        546,374     7,917,025
      Extensions and Discoveries      252         50,714       718,937
      Purchases                         -              -        47,817
      Revisions                         -         (2,395)     (245,781)
      Production                     (986)       (67,364)     (641,967)
      Sales                             -              -             -
                                      ---            ---           ---
    Balance -Dec 31, 2009           4,851        527,329     7,796,031
                                    =====        =======     =========


    TOTAL BOE (Mboe)
    ----------------
                                 North Sea       Argentina      Total
                                 ---------       ---------      -----
    Balance -Dec 31, 2008         188,846        122,841     2,400,648
      Extensions and Discoveries    6,098         13,317       194,903
      Purchases                         -              -        20,993
      Revisions                         2           (572)      (37,043)
      Production                  (22,423)       (16,609)     (212,915)
      Sales                             -              -             -
                                      ---            ---           ---
    Balance -Dec 31, 2009         172,523        118,977     2,366,586
                                  =======        =======     =========


    Net Change                    (16,323)        (3,864)      (34,062)
                                  =======         ======       =======

    2009 BOE Percentage               7.3%           5.0%        100.0%
                                      ===            ===         =====

    2009 Production Percentage       10.5%           7.8%        100.0%
                                     ====            ===         =====

    Production (BOE)
      Oil + NGL's                    99.3%          32.4%         49.7%
      Gas                             0.7%          67.6%         50.3%
                                      ---           ----          ----
                                    100.0%         100.0%        100.0%
                                    =====          =====         =====


                                APACHE CORPORATION
                           OIL & GAS RESERVES AND COSTS 
                       For the Year Ended December 31, 2009

    Reserve Additions (Mboe)

                                     U.S.    Canada   Egypt    Australia
                                     ----    ------   -----    ---------

    Extensions and Discoveries       42,754  58,552   41,461     32,721
    Revisions                         3,883 (22,373) (19,890)     1,907
    Purchases                        20,987       6        -          -
                                     ------     ---      ---        ---
      Total Adds                     67,624  36,185   21,571     34,628
                                     ======  ======   ======     ======


                                  North Sea Argentina  Chile      Total
                                  --------- ---------  -----      -----

    Extensions and Discoveries       6,098    13,317        -    194,903
    Revisions                            2      (572)       -    (37,043)
    Purchases                            -         -        -     20,993
                                       ---       ---      ---     ------
      Total Adds                     6,100    12,745        -    178,853
                                     =====    ======      ===    =======



    Capital Cost Information (in
     thousands)

                                    U.S.    Canada   Egypt    Australia
                                    ----    ------   -----    ---------
    Exploration & Development,
     excluding Capitalized
     Interest & Asset Retirement
     Cost (1)                      $928,415 412,059  675,748    602,734
    Acquisitions                    195,966  13,182   39,000     37,835
                                    -------  ------   ------     ------
                                 $1,124,381 425,241  714,748    640,569
                                 ========== =======  =======    =======


                                  North Sea Argentina  Chile      Total
                                  --------- ---------  -----      -----
    Exploration & Development,
     excluding Capitalized
     Interest & Asset Retirement
     Cost (1)                      375,204   139,804   10,757 $3,144,721
    Acquisitions                         -    24,489        -    310,472
                                       ---    ------      ---    -------
                                   375,204   164,293   10,757 $3,455,193
                                   =======   =======   ====== ==========


    (1)   Reconciliation of Exploration and Development Costs to Exploration
          and Development Costs, excluding Capitalized Interest and Asset
          Retirement Cost, a Non-GAAP Financial Measure

    Presented below is a reconciliation of exploration and development costs
    (GAAP) to exploration and development costs, excluding capitalized
    interest and asset retirement cost (Non-GAAP).  Management believes
    exploration and development costs, excluding capitalized interest and
    asset retirement cost is a more accurate reflection of the expenditures
    during the current year.  



                                    U.S.     Canada   Egypt       Australia
                                    ----     ------   -----       ---------

    Exploration & Development
     Costs                       $1,124,805  504,336  683,136      656,283
    Less: Capitalized Interest      (14,666) (11,936)  (7,388)     (15,423)
    Less: Asset Retirement Cost    (181,724) (80,341)       -      (38,126)
                                   --------  -------      ---      -------
    Exploration, Development,
     excluding Capitalized
     Interest & Asset Retirement
     Cost                          $928,415  412,059  675,748      602,734
                                   ========  =======  =======      =======

                                  North Sea  Argentina  Chile      Total
                                  ---------  ---------  -----      -----

    Exploration & Development
     Costs                          375,485  143,411   10,757   $3,498,213
    Less: Capitalized Interest         (281) (10,859)       -      (60,553)
    Less: Asset Retirement Cost           -    7,252        -     (292,939)
                                        ---    -----      ---     --------


    Exploration, Development,
     excluding Capitalized
     Interest & Asset Retirement
     Cost                          375,204    139,804   10,757  $3,144,721
                                   =======    =======   ======  ==========

APA-F

SOURCE Apache Corporation

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