Apache to Sell 50 MMcf Per Day for $5 Per MMBtu Through Argentina's Gas Plus Program
05 Oktober 2009 - 6:21PM
PR Newswire (US)
HOUSTON, Oct. 5 /PRNewswire-FirstCall/ -- Apache Corporation
(NYSE:APA) ( NASDAQ: APA) today announced government approvals of
new contracts to supply 50 million cubic feet (MMcf) of natural gas
per day from two fields in Argentina's Neuquen and Rio Negro
provinces at a price of $5 per million British thermal units
(MMBtu). "The new contracts - the first approved by the secretary
of energy under the government's Gas Plus program - are examples of
Argentine government policies that will encourage development of
tight and unconventional natural gas reservoirs and bring new
supplies of much needed energy to market," said Jon Graham,
president of Apache Argentina. During the second quarter, Apache
produced 193 MMcf of gas per day in Argentina at an average price
of $1.89 per Mcf, including sales to regulated residential and
power generation markets as well as deregulated industrial markets.
Regulators recently approved price increases in the residential and
power generation sectors. The Gas Plus contracts will commence in
January 2011, although the customer - a power plant operator - has
indicated it may begin taking gas in mid-2010. To fulfill the
contract, Apache is planning to drill up to 12 wells to tap deep
unconventional natural gas reservoirs in the Anticlinal Campamento
field in the Neuquen Basin - a complex geologic setting which
requires drilling highly deviated wellbores completed with multiple
hydraulic fracture stimulations. At the Estacion Fernandez Oro
field in Rio Negro province, Apache is planning to drill up to 36
wells, each with multiple hydraulic fracture stimulations, to
develop the low-permeability Lower Lajas sandstone formation at a
depth of 12,500 feet. Apache will provide measurement and
production facilities for the Gas Plus volumes separate from the
rest of the fields' production facilities. "These reserves would
not be developed without the incentives of the Gas Plus program,"
Graham said. "Apache has submitted five additional development
projects for approval under Gas Plus." Apache Corporation is a
large oil and gas independent with operations in the United States,
Canada, the United Kingdom sector of the North Sea, Egypt,
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 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.
APA-AR DATASOURCE: Apache Corporation CONTACT: Bob Dye,
+1-713-296-6662, or Investors, Tom Chambers, +1-713-296-6685, both
of Apache Corporation Web Site: http://www.apachecorp.com/
Copyright