RBG Clinches Apache Contract Extension in North Sea

- RBG Clinches Apache Contract Extension in North Sea

Thursday, September 08, 2011
RBG

RBG has secured a major £30 million two year contract extension to provide Apache North Sea Limited with fabric maintenance and deck crew services.

The contract, which RBG has held since 2008, will see the continued delivery of a wide range of integrated services, including coatings specification, application and repair, passive fire protection, thermal insulation, special access solutions and scaffolding, across the five Forties field platforms, located in the North Sea.

Working with Apache, RBG has established an excellent safety record over the past three years, recording more than 542,000 hours without a lost time incident. RBG deploys multi-disciplined teams that execute the complex workscopes whilst minimizing pressures on bed space and travel logistics.

Dave Workman, RBG, chief executive officer, said, "Securing this contract underlines our position as the leading support contractor of choice in the UKCS and highlights the benefits of our integrated service offering. The region is still a major growth area and securing this extension positions us well for our plans in the region in 2011 and beyond.

"Over the past 35 years we have established an unrivaled track record for delivering fabric maintenance services across the North Sea. Securing this extension is recognition of the great work our projects team carry out and the safe, quality service they deliver, both onshore and offshore."

Bill Logan, Apache North Sea's production manager, said, "RBG has delivered a high quality service over the past three years and we are happy to continue our working relationship with the company."

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Apache Gets Environmental Nod for Julimar, Brunello Fields

- Apache Gets Environmental Nod for Julimar, Brunello Fields

Thursday, September 08, 2011
Apache Corp.

Apache said a subsidiary has received Australian government environmental approval for development of the Julimar and Brunello offshore natural gas fields that will supply natural gas to the Chevron-operated Wheatstone LNG project.

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TAG Enters Farmout Agreement with Apache in NZ East Coast Basin

- TAG Enters Farmout Agreement with Apache in NZ East Coast Basin

Friday, September 02, 2011
TAG Oil Ltd.

TAG Oil reported that it has entered into a farmout agreement with Apache to explore and potentially develop oil and natural gas resources in the East Coast Basin of New Zealand.

Apache has agreed to conduct a multi-phased exploration, appraisal and potential development program within TAG's East Coast Basin exploration permits PEP 38348, PEP 38349 and PEP 50940. The Permits comprise in excess of one million prospective acres of onshore oil and gas opportunities located on the southeast portion of the North Island. TAG currently holds a 100% working interest in the properties.

Apache has agreed to pay for a portion of TAG's direct costs incurred to date, as well as providing TAG a full carry on three phases of operations to a maximum agreed cost in each phase. If the agreed cost is exceeded in any phase, or if additional operations are conducted, Apache will pay a majority share of any drilling or seismic costs in the specified percentages set out in the Agreement.

Each phase of operations will include an aggressive program of both 2D / 3D seismic and drilling with Apache earning an increasing interest in the Permits as follows:

• Phase 1: Apache will earn a 50% interest in 5,120 acres of the Permits after operations are conducted and by committing to Phase 2.
• Phase 2: Apache will earn a 25% interest in the Permits after operations are conducted and by committing to Phase 3.
• Phase 3: Apache will earn a 50% interest in the Permits after operations are conducted and by committing to Phase 4 operations.

Subject to certain conditions, the planned exploration work program will be conducted over the next four years. Seismic operations will start in 2011 with drilling to commence in 2012.

Apache will be the Operator for all activities undertaken pursuant to the Agreement, excluding the initial four vertical wells of the work program that TAG will operate with Apache's assistance. Apache will spend up to $100 million upon completion of Phase 3 to earn a 50% interest in the Permits. At the end of Phase 3 operations TAG will remain as operator of the Permits. If Apache commits to Phase 4 operations, all costs will then be shared equally between Apache and TAG going forward.

TAG Oil CEO, Garth Johnson, commented, "TAG Oil is excited and honored to partner with Apache in the East Coast Basin to achieve a common goal of converting the potential of the East Coast Basin to proven reserves with integrity, respect and excellence in a safe and environmentally responsible manner. We are planning an aggressive exploration program with Apache with a starting date of September 2011 to initiate seismic acquisition with drilling to begin in early 2012"

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Atwood Semisubs Win Apache Work in AU

- Atwood Semisubs Win Apache Work in AU

Thursday, September 01, 2011
Atwood Oceanics Inc.

Atwood Oceanics announced that one of its subsidiaries has been awarded two contracts by Apache Energy Ltd for work in Australia for the Atwood Eagle and the Atwood Falcon with durations of 18 months and 30 months, respectively. With these contracts, Atwood's total revenue backlog increases from approximately $990 million to $1.55 billion.

The Atwood Eagle is expected to commence its contract in July 2012 in direct continuation of its prior contract. The Atwood Falcon will undergo approximately 90 days of planned maintenance and contract preparation work prior to transiting to Australia to commence operations expected in May 2012. The firm contractual commitments for the Atwood Eagle and the Atwood Falcon are expected to extend to January 2014 and November 2014, respectively.

"We are very pleased to be providing deepwater drilling services to Apache with these two longer-term agreements," commented Rob Saltiel, Atwood President & CEO. "Atwood has been active in Australia for over 35 years, and we look forward to increasing our presence further in this growing and strategic market."

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Halliburton Wraps Up 1st HZ Shale Well in Argentina for Apache

- Halliburton Wraps Up 1st HZ Shale Well in Argentina for Apache

Thursday, August 18, 2011
Halliburton Co.

Halliburton has successfully executed the first horizontal, multistage hydraulic fracture shale gas completion in Argentina's Neuquén Basin for Apache. Halliburton provided all major well construction and completion services for the project, resulting in the successful delivery of South America's first horizontal and deepest shale gas well.

As global development of unconventional resources materialize, Halliburton is in the process of pre-positioning Unconventional Reservoir Solutions Teams around the world. These teams draw upon the extensive knowledge and experience garnered from Halliburton's unrivalled position in North America's unconventional reservoir development. Halliburton, chosen by Apache because of its Buenos Aires-based Unconventional Reservoir Solutions Team's expertise and understanding of the specific complexities of the Los Molles shale formation, placed 10 hydraulic fracture stages in the horizontal section at a depth of over 4,400 meters.

"Halliburton's ability to apply its expertise globally will assist operators to efficiently develop frontier unconventional reservoirs," said Roberto Munoz, vice president, Latin America Region, Halliburton. "With the third largest estimated unconventional reserves after China and the United States, Argentina's shale gas potential will benefit greatly from the application of these technologies."

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Apache Resumes Production at Van Gogh

- Apache Resumes Production at Van Gogh

Friday, August 05, 2011
Apache Corp.

Production has resumed at the Apache-operated Van Gogh development offshore Western Australia after the completion of repairs on the Ningaloo Vision floating production, storage and offloading vessel.

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Apache Continues Winning Streak in Egypt's Western Desert

- Apache Continues Winning Streak in Egypt's Western Desert

Thursday, August 04, 2011
Apache Corp.

Apache reported two new oil discoveries in its Faghur Basin play of Egypt's Western Desert oil and gas province.

• A test of the Jurassic Safa sand in the Faghur Deep-1X flowed at a rate of 6,671 barrels of oil and 2.76 million cubic feet (MMcf) of natural gas per day.
• The Neilos-1X discovery on the Neith South development lease test-flowed at a rate of 4,179 barrels of oil and 4.2 MMcf of gas per day from the Jurassic Safa formation. The well also encountered two Alam El Bueib (AEB) Cretaceous pay sands that were not tested.

The latest discoveries were developed through evaluation of modern 3D seismic surveys acquired over the southwestern part of the Khalda Offset Concession and the southern part of the West Kalabsha Concession. In 2011, Apache has drilled and/or completed 11 exploration wells, resulting in nine new field discoveries in the Faghur Basin play. Drilling is continuing on two exploration wells, and seven additional exploration wells are slated to reach total depth in the area before the end of 2011.

"The Faghur Basin continues to be a successful focus area for Apache, with prolific oil and gas production from the AEB, Safa, and Paleozoic reservoirs that demonstrates the multiple-pay potential of this area of the Western Desert," said Tom Voytovich, vice president of Apache's Egypt Region.

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Apache 2Q Earnings Buoyed by Record Production

- Apache 2Q Earnings Buoyed by Record Production

Thursday, August 04, 2011
Apache Corp.

Apache reported production of 749,000 barrels of oil equivalent (boe) per day and earnings of $1.2 billion, or $3.17 per diluted share, for the three-month period ending June 30, 2011. These compare with production of 647,000 boe per day and net income of $860 million, or $2.53 per diluted share, for the same period in the prior year.

"Apache had an outstanding quarter with record production in oil, gas, and natural gas liquids," said G. Steven Farris, chairman and chief executive officer. "This reflects the scale and balance of our portfolio, which comes from diversity across geographic regions, gas and liquids production, and a constant focus on rate of return. We're realizing additional value from last year's acquisitions and pursuing opportunities for future growth at both our legacy assets and in new areas."

The combination of higher oil prices and record production levels resulted in record quarterly revenues for second quarter 2011. Oil and gas revenues were $4.4 billion, a 47 percent increase from revenues of $3.0 billion for the same period last year. Cash from operations before changes in operating assets and liabilities* also were a quarterly record at $2.6 billion, up 44 percent from the prior year's $1.8 billion. Excluding certain items that management believes affect the comparability of operating results, Apache reported adjusted earnings* of $1.3 billion in second quarter 2011 compared with $834 million in the year-earlier period. On a per-share basis, adjusted earnings were $3.22 in the second quarter compared with $2.46 per diluted share in the prior-year period.

Liquid hydrocarbons represented 49 percent of production and 78 percent of revenues. Apache benefited from higher oil prices for its international production indexed to Dated Brent benchmarks, as well as sweet crudes from the Gulf of Mexico, which continue to receive a meaningful premium per barrel compared with production benchmarked to West Texas Intermediate prices.

On the operational and commercial front, the company has achieved several recent milestones. These include:

• Successful bidder on nearly 515,000 acres in onshore and offshore state leases at Alaska's Cook Inlet. The company now has approximately 800,000 acres of prospective land in the region, and a seismic survey for the area is planned over the next 12-18 months.
• Signing of a long-term sales and purchase agreement with Tokyo Electric Power (TEPCO) for liquefied natural gas (LNG) from the Wheatstone LNG project in Western Australia. The Wheatstone partners (Apache, Chevron and a subsidiary of Kuwait Foreign Petroleum Co.) will supply TEPCO with 3.1 million metric tons per annum when the facility comes online, which will be determined at project sanction forecasted for later this year. Apache's expected net share of LNG sales to TEPCO is equivalent to approximately 58 million cubic feet of natural gas per day.
• Unitization of portions from four leases at the Lucius deepwater oil and gas discovery in the Gulf of Mexico, where Apache and its partners also signed an agreement that allows for joint venture processing of gas from a nearby third-party discovery.
• Agreement to a 50-50 partnership to build additional gas processing infrastructure in the Permian Basin. A new gas processing plant will remove constraints to higher production at the Deadwood field, where Apache is currently running nearly half of its 24 rigs in the region.
• Commencement of production from Apache's most prolific development well in the Forties field (North Sea), which came online in excess of 12,500 barrels of oil per day. A second development well also completed in June came online at a daily rate of nearly 8,800 barrels of oil.
• Drilling of five new field discoveries in the Faghur basin of Egypt's Western Desert. In aggregate the wells tested at rates exceeding 12,000 barrels of oil per day and 19 million cubic feet of natural gas.

"Our regional business model is central to our value creation," Farris said. "It provides us with many ways to win -- we're not dependent on any single market or play. This results in more predictable, profitable long-term growth."

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Apache Argentina Reaches TD at Huacalera Shale Well

- Apache Argentina Reaches TD at Huacalera Shale Well

Tuesday, August 02, 2011
Americas Petrogas Inc.

Americas Petrogas announced that the Hua.x-1 well on the Company's Huacalera Block, operated by the Company's joint venture partner, Apache Argentina, has reached total depth (TD) of 4100 meters (13,450 feet). A full suite of logs, including image logs, has been run and production casing has been successfully set all the way to TD.

The primary target Vaca Muerta Shale Formation (531 meters or 1,742 feet approximate gross thickness) has initial indications of overpressure. Gas shows were encountered in the Mulichinco Formation (140 meters or 459 feet approximate gross thickness), the Quintuco formation (414 meters or 1,358 feet approximate gross thickness) through the Vaca Muerta Formation and into the Tordillo Formation, and these results were reported to the appropriate government authorities.

The comprehensive suite of logs and mud log information will now be integrated and interpreted. The vertical cores, sidewall cores and rock cuttings have been sent to 3 different laboratories for analysis to measure the petrophysical and geochemical characteristics of the samples, both shales and sands. The results, which are expected during 3Q-2011, will provide fracking and testing options for tight sands and shale gas or oil reservoirs.

This is the first Vaca Muerta Shale gas pilot exploration well drilled in the 250,000 acre (390 sections) Huacalera block which lies along the emerging shale gas and shale oil play corridor in the western part of the Neuquen Basin, Argentina. As previously stated, Americas Petrogas has a 39% Working Interest in this large block and is carried 100% on the Hua.x-1 well by Apache.

Commenting on the drilling of this well, Mr. Barclay Hambrook, President and CEO, stated, "We are very pleased that the well has been drilled and cased successfully and, with Apache, we are looking forward to the results of fracking, testing and further exploration on this very large and promising block. Huacalera occupies a strategic location almost midway between our 5 northern blocks and 3 large southern blocks along the emerging shale play corridor."

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Crosstex Energy, Apache to Jointly Invest in Permian Basin Facility

- Crosstex Energy, Apache to Jointly Invest in Permian Basin Facility

Tuesday, July 12, 2011
The Crosstex Energy Cos

The Crosstex Energy companies announced a partnership with Apache to jointly invest $85 million in a new-build natural gas processing facility in the Permian Basin in West Texas. The initial phase of the project will provide interim and long-term processing solutions, compression and residue gas takeaway for Apache's Deadwood development in Glasscock County. Crosstex and Apache will fund the processing project equally and each hold a 50 percent working interest. Separately, Crosstex will buy and upgrade a nearby rail terminal to provide transportation of natural gas liquids (NGL) to its Eunice fractionation facility in southern Louisiana.

Initially, Crosstex and Apache will install a refrigeration plant with a capacity of 20 million cubic feet (MMcf) per day as an interim gas processing solution, compression and takeaway, all of which are expected to be operational by the fourth-quarter 2011. A cryogenic gas processing facility with a capacity of 50 MMcf per day is expected to be operational in the second-quarter 2012. Crosstex will manage construction and operate the facilities.

"Crosstex is excited to embark on this joint interest project with Apache, a premier independent energy company that has operated in the Permian Basin in West Texas for nearly 20 years and is one of the largest producers in the region with an active drilling program. We are extremely pleased Crosstex can provide Apache with creative midstream solutions for their gas and NGL products," said Barry E. Davis, Crosstex President and Chief Executive Officer. "We look forward to continuing our long-term working relationship with Apache.

"This transaction provides Crosstex with a significant footprint for future growth in the Permian Basin area where we will pursue additional business opportunities," Davis added.

Additionally, Crosstex will purchase and upgrade the abandoned Patriot Fractionator in Midland County. The facility will be upgraded and refurbished to initially serve as a rail terminal for Apache raw make NGL. Crosstex will transport NGL via rail to its Eunice fractionation facility in south central Louisiana for fractionation and sales. Product will be delivered to the Mesquite terminal via existing NGL pipelines or by trucks. Crosstex will invest $12 million in the project, which is scheduled to be completed and operational in the fourth-quarter 2011. This facility will provide NGL takeaway for the constrained Permian infrastructure until a long term pipeline solution becomes available.

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Chevron, Apache, PTTEP Awarded Australia Exploration Permits

- Chevron, Apache, PTTEP Awarded Australia Exploration Permits

by Ross Kelly
Friday, July 08, 2011
Dow Jones Newswires
SYDNEY

Chevron, Apache and Thailand's PTT Exploration & Production (PTTEP) are among six companies that have been awarded new offshore oil and gas exploration permits by Australia's government.

Resources and Energy Minister Martin Ferguson on Friday estimated that exploration work on the six permits in waters off Western Australia and South Australia states will have a combined value of nearly A$137 million over three years, with further investment possible depending on exploration success.

Special conditions have been placed on PTTEP, which was responsible for the Montara oil spill offshore northern Australia in 2009. These include lodging governance processes with the regulator prior to drilling, preparing a spill mitigation report, and being open to a peer review of drilling operations at the regulator's discretion.

Other companies to win permits include MEO Australia and little-known Australian firms Flow Energy Ltd. and Bight Petroleum Corp.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Apache Corp Announced The Results Of Two Development Wells

- Apache Corp Announced The Results Of Two Development Wells



Jul 6, 2011

Apache Corp. (NASDAQ:APA) announced the results of two development wells completed in June at the company's Forties field in the UK sector of the North Sea.

Charlie 4-3 commenced production at a rate of 12,567 barrels of oil per day (b/d), which is the highest in the Forties since 1990 and follows the previously disclosed Charlie 2-2, completed in March with an initial production rate of 11,876 b/d. Delta 3-5 commenced production at 8,781 b/d.

The company acquired a new 4-D seismic survey over Forties during 2010, enhancing the company's ability to identify accumulations of by-passed oil within the field area.

James L. House, region vice president and managing director of Apache North Sea Ltd. said, "The safe and very successful delivery of our 2011 drilling program reflects the experience, teamwork, technical skill and commitment of the Apache North Sea region."

Apache has a potential upside of 18.1% based on a current price of $124.49 and an average consensus analyst price target of $147.05.

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Apache Reports Record IP Rate at Forties Field

- Apache Reports Record IP Rate at Forties Field

Wednesday, July 06, 2011
Apache Corp.

Apache announced the results of two development wells completed in June at the company's Forties field in the UK sector of the North Sea.

• Charlie 4-3 commenced production at a rate of 12,567 barrels of oil per day (b/d). This well's initial production (IP) rate is the highest in the Forties since 1990 and follows the previously disclosed Charlie 2-2, which was completed in March with an IP rate of 11,876 b/d.
• Delta 3-5 commenced production at 8,781 b/d.

Apache acquired a new 4-D (time-lapse) seismic survey over Forties during 2010, which enhances the company's ability to identify accumulations of by-passed oil within the field area. Charlie 4-3 and Delta 3-5, the eighth and ninth development wells brought on production at Forties during 2011, successfully targeted two of these accumulations. Additional 4-D driven targets are being identified across the field. Apache expects to drill a total of 16 wells in the Forties field during 2011.

"The safe and very successful delivery of our 2011 drilling program reflects the experience, teamwork, technical skill and commitment of the Apache North Sea region," said James L. House, region vice president and managing director of Apache North Sea Ltd.

When Apache acquired Forties in 2003, the field was producing 40,000 b/d. With the onset of these new wells in mid-June, gross daily production rates have reached as high as 70,000 barrels of oil equivalent, even with output constraints due to construction projects and temporary pipeline closures. At the Charlie platform alone, Apache development drilling has increased production from a low of less than 5,000 b/d in 2006 to a present rate of approximately 30,000 b/d. Apache expects full transmission capacity to become available during the third quarter as planned repair and maintenance work is completed and the Bravo pipeline comes back online.

Apache owns a 97.14 percent interest in the Forties field. Forties is the largest single oil accumulation discovered in the United Kingdom sector of the North Sea and 40 years after its discovery is the second-highest producing oil field.

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Apache Strikes Multiple Pay in Egypt's Faghur Basin

- Apache Strikes Multiple Pay in Egypt's Faghur Basin

Thursday, June 16, 2011
Apache Corp.

Apache reported five new oil discoveries in its Faghur Basin play in the far southwest of Egypt's Western Desert oil and gas province.

Apache also said that the AG-96 development well in the Abu Gharadig Concession tested 3,347 barrels of oil and 1 million cubic feet (MMcf) of natural gas per day from the Lower Bahariya formation. The well – drilled on acreage acquired from BP in late 2010 – is expected to lead to several additional wells before year end.

The Faghur Basin discoveries included:

• West Kalabsha-I-4 logged 79 feet of net pay in the Jurassic Safa sands. In a test, the well flowed 7,150 barrels of oil per day and 11.4 million cubic feet (MMcf) of gas per day.
• Faghur North-1X logged 25 feet of net pay in the Safa and Paleozoic Desouqy sands. Combined tests had a rate of 1,444 barrels of oil and 3.9 MMcf of gas per day.
• Faghur South-1X logged 38 feet of net pay in Safa and Cretaceous AEB-6 sands. The Safa tested 2,768 barrels of oil and 4 MMcf of gas per day.
• Huni-1X logged 27 feet of net pay in the AEB-3 sands. The well tested 970 barrels per day from the AEB-3E sand.
• Neith North-1X logged 20 feet of net pay in the AEB-3 sands and 57 feet of net pay in the Safa sands. A Safa well test is planned this month.

"The Faghur Basin continues to be a successful focus area for Apache, with AEB, Safa, and now Paleozoic reservoirs that have proven to be prolific oil and gas producers. These recent discoveries support the multi-pay potential of this oil-prone area of the Western Desert," said Tom Voytovich, vice president of Apache's Egypt Region. "The Huni and Neith North discoveries continue Apache's recent exploration success in the eastern area of the Faghur Basin.

"These discoveries and production from the Tayim development lease approved during the revolution period illustrate the fact that Egypt's energy sector is continuing to move forward," Voytovich said. "Our recent drilling successes provide clear evidence of the exploration potential on Apache acreage in Egypt and the benefits of working in stacked-pay areas."

Apache recently drilled the first discovery on its westernmost exploration concession. The Siwa-D-1X drilled in the Siwa Concession pushed Jurassic and Cretaceous plays farther south and westward and will lead to follow-up exploration prospects. Apache expects to commence production from the well upon approval of a development plan later in 2011.

The Tayim West-1X discovery in the West Kalabsha Concession represents the first Paleozoic success found in a reservoir separate from the younger proven Jurassic and Cretaceous sands and opens up the area to further deep tests in upcoming wells. The discovery is currently on production.

Thus far in 2011, Apache has drilled eight new discoveries in 10 attempts in the Faghur Basin, and drilling is under way on three additional wells –Mandulis-1X, Neilos-1X and Faghur North-2X. Eight additional exploration wells are planned for the area this year.

Apache continues to evaluate 3-D seismic surveys to identify additional exploration opportunities, including a recently completed 400-square-mile (1,040 square kilometers) survey across the Apache-operated Sallum Concession on the west side of the basin, and a 656-square-mile (1,698 square kilometers) survey covering the eastern part of the basin underlying the Khalda Offset, South Umbarka and Shushan concessions.

Apache's current gross operated production in Egypt totals approximately 215,000 barrels of oil and 900 MMcf of gas per day, including 40,000 barrels of oil per day from the Faghur Basin.

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Apache Shuts Van Gogh FPSO for Repairs

- Apache Shuts Van Gogh FPSO for Repairs

Wednesday, June 15, 2011
Rigzone Staff

Apache reported that scheduled maintenance of the Ningaloo Vision floating production, storage and offloading (FPSO) vessel commenced on June 11, 2011.

The Van Gogh oil field will be shut in during the maintenance activities. Since October, the FPSO has been shut several times for unplanned and planned repairs.

The Van Gogh field was producing approximately 40,000 barrels per day (bpd). With a 52.5 percent stake, Apache operates the Van Gogh field, while Inpex holds the remaining.

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Apache Takes Reins at Origin's Block Offshore Kenya

- Apache Takes Reins at Origin's Block Offshore Kenya

Wednesday, June 15, 2011
Origin Energy Ltd.

Origin has completed an agreement with a subsidiary of US independent Apache to divest a 50 percent interest in a Production Sharing Contract (PSC) for petroleum exploration and production, pertaining to Block L8 located in the Lamu Basin, offshore Republic of Kenya.

Under the terms of the agreement Origin has been reimbursed historical costs of US $13.2 million and Apache has become operator. In addition, Apache will meet a component of Origin's costs of an initial exploration well to be drilled in Block L8, on the Mbawa structure. The schedule for exploration activity has yet to be determined

Commenting on this agreement, Origin's Executive General Manager, Geoscience & Exploration New Ventures, Dr. Rob Willink said, "Origin is pleased to have completed this transaction with Apache. The joint venture has agreed to go forward with exploration drilling, with Apache as operator bringing its expertise to that endeavor."

Offshore East Africa at large has become an industry focus for exploration as a result of recent deepwater discoveries offshore Tanzania and Mozambique. Block L8 comprises 5,123 square kilometres with attractive exploration opportunities that include several large objectives. Prospectivity of the block centers on the Mbawa structure, a large but complexly faulted anticline mapped on 3D seismic data with potential for both oil and gas at inferred Cretaceous and Jurassic reservoir levels.

As a result of this transaction the interest holders in PSC Block L8 will become:

• Apache 50%
• Origin Energy Kenya Pty Ltd 25%
• Pancontinental Oil & Gas NL / Afrex Ltd *^ 25%

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Corridor: Apache Canada Pulls Out Of New Brunswick Shale Opportunity

- Corridor: Apache Canada Pulls Out Of New Brunswick Shale Opportunity

Friday, June 03, 2011
Corridor Resources Inc.

Corridor Resources has received notification that Apache Canada has elected not to proceed with the second phase of the farm-out program with Corridor in respect of the potential shale gas resource development near Elgin, New Brunswick.

As was announced by Corridor on March 30, 2011, the two horizontal wells drilled and hydraulically fracture stimulated by Apache (Will DeMille G-59 and Green Road B-41), using similar large slick water techniques, have not generated sustained shale gas production to date. In May, the Will DeMille G-59 well was re-opened and flowed frac fluid at low rates with minor gas shows over 5 days. It is important to note that, when the Will DeMille G-59 well was shut-in after initial testing in early December, 2010, it had recovered only approximately 4% of the total frac fluid.

Corridor previously reported that the Green Road B-41 well had been placed on a 45 day gas lift which ended on March 16, 2011. At that time, the well was shut-in after recovering 17% of the frac fluid. In late May, due to significant well head pressure build-up, the well was reopened and flowed gas at a maximum rate of 0.7 mmscf/d for several hours prior to frac fluids loading the well causing gas rates to decline.

Based on a consensus among third party expert consultants and Corridor technical staff, the most significant issues identified with the G-59 and B-41 well performance relate to the design of the horizontal wells in this high-stress environment and the fracture technique. Corridor believes that a different well design and frac program will lead to a commercial development of the Frederick Brook shale. It should be noted that, as previously reported, Corridor re-tested the Green Road G-41 well in December 2010, which produced gas at a constant rate of 4 mmscf/d for five days at a final flowing pressure of 1306 psi. During Q1 2011, the G-41 well was used to provide gas lift and consistently delivered the required rate of 0.5 mmscf/d during a 45 day test, at a final pressure of 2007 psi.

Corridor intends to drill two vertical appraisal wells in the Elgin area commencing late this year in order to confirm the well productivity required to proceed with a pilot phase. Based on the results of these appraisal wells, Corridor plans a staged approach to demonstrate commercial viability which would include a pilot phase with a capacity of approximately 40 mmscf/d, targeting gas production in late 2013. This program would include vertical wells in a multi-well pad design to take advantage of the shale thickness and the high gas saturations. During the pilot phase, Corridor will evaluate various drilling and completion techniques.

In addition, Corridor will entertain discussions with potential joint-venture partners who wish to engage in a program to develop the Frederick Brook shale and who can add value to the potential development. The information and data obtained to date from Corridor's and subsequent Apache programs will be of significant value as this program advances.

It is important to recognize that the evaluation of the Frederick Brook shale gas resources is still in its early stages, and that the best estimate of gross discovered resources is 67.3 trillion standard cubic feet (as estimated by GLJ Petroleum Consultants Ltd. in the GLJ shale resources report, effective June 1, 2009.)

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Apache Begins Gas Flow Offshore AU

- Apache Begins Gas Flow Offshore AU

Thursday, June 02, 2011
Apache Corp.

Apache said that a subsidiary's Halyard-1 discovery well has commenced producing gas and condensate for delivery into the Western Australian domestic market.

Production from the well, drilled in 2008 in production license WA-13-L, will be transported to market via an existing pipeline to the East Spar field facilities and from there to Apache's Varanus Island processing and transportation hub.

Development of the Spar field, located in adjacent License WA-4-R, is expected to follow in late 2012 as additional capacity becomes available at Varanus Island. The fields are both controlled from Apache's John Brookes platform. Apache's subsidiary owns a 55-percent interest in both WA-13-L and WA-4-R. Santos owns the remaining interests.

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Apache Shuffles Management

- Apache Shuffles Management

Wednesday, June 01, 2011
Apache Corp.

Apache announced the following promotions and appointments to its management team:

• Jon Jeppesen has been promoted to the new role of executive vice president overseeing the operations of the Gulf of Mexico Shelf, Deepwater and Gulf Coast Onshore regions.
• Jon Graham has been named vice president of the global environmental, health and safety organization.
• Mark Bauer has been promoted to region vice president for the Gulf of Mexico Shelf.
• Michael Bose moved up to region vice president and country manager for Argentina.
• Graham Lawton was named vice president — liquefied natural gas (LNG) projects, leading the Kitimat project team for the LNG facility and Pacific Trail Pipelines.
• Kenny Paterson has been named vice president, LNG marketing and shipping, of Apache Energy Ltd.

"Apache is fortunate to have a solid team of seasoned leaders to help manage our growing global portfolio," said Rodney Eichler, president and chief operating officer for Apache. "As people advance in our organization, other Apaches equipped with the experience, leadership skills and awareness of our culture and goals can step forward."

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Apache Northwest Reaches TD at La Rocca Well

- Apache Northwest Reaches TD at La Rocca Well

Wednesday, May 25, 2011
Oilex Ltd.

Oilex has been advised by the Operator that the La Rocca-1 exploration well has reached total depth of 4,864 meters after drilling through the Intra Mungaroo Formation channel sandstone primary objective. There are no indications of gas in the LWD and mud log data and
final wireline logs will now be run.

The participating interests in the WA-388-P permit after satisfaction of the requirements of the farm- in agreement and amendment, are set out below:

Joint Venture Party/ Participating Interest

• Oilex Ltd 8.4%
• Apache Northwest Pty Ltd (Operator) 40%
• Sasol Petroleum Australia Ltd 18%
• Videocon Industries Ltd 8.4%
• Gujarat State Petroleum Corporation Ltd 8.4%
• Bharat PetroResources Limited 8.4%
• Hindustan Petroleum Corp. Ltd 8.4%

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