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Apache Arranges $350 Million Financing for Australia Oil Projects

December 8, 2008

HOUSTON, Dec. 8 /PRNewswire-FirstCall/ — Apache Corporation
(NYSE, Nasdaq: APA) said today that it has arranged a $350 million financing
for the Van Gogh and Pyrenees oil developments offshore Western Australia. The
two projects are expected to add a total of 40,000 barrels per day to Apache’s
worldwide net oil production over the next 18 months.

The interest rate for initial borrowing in the financing will be
approximately 3.5 percent for the first six months; thereafter, interest rates
will float with LIBOR. BNP Paribas and HSBC were the lead banks in the
financing.

“This transaction enables Apache to advance our development inventory by
funding two major projects at competitive financing rates, despite continuing
turmoil in the financial markets,” said G. Steven Farris, Apache’s president
and chief executive officer.

Apache’s Van Gogh development is expected to commence production in the
second quarter of 2009 and add 20,000 barrels per day to Apache’s net
worldwide oil output. Apache is the operator and owns 52.5 percent of the
development.

First oil production from the Pyrenees development is expected in early
2010. The project also is expected to add 20,000 barrels per day to Apache’s
net oil production. Pyrenees, which is operated by BHP Billiton, will develop
reserves in two blocks; Apache has a 28.57-percent interest in License WA-12-R
and a 31.5-percent interest in WA-155-P.

The Pyrenees and Van Gogh projects are major elements of Apache’s
inventory of developments that is expected to fuel growth over the next four
years. Apache reduced much of the commodity price risk in conjunction with the
Pyrenees and Van Gogh investments by fixing a portion of U.S. cash flow by
hedging a quantity of U.S. production equal to approximately two thirds of the
projects’ anticipated net production for the first three years. The hedges
lock in prices ranging from $60 to $75 per barrel.

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 2007 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.

APA-F

APA-AU

SOURCE Apache Corporation


Source: newswire



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