HOUSTON, Nov. 17, 2015 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) is hosting a webcast today with
analysts and investors to provide an update on the company's North
Sea operations, recent drilling success and views on the future
potential of its portfolio in the region.
"Today we will highlight the uniqueness of Apache's global
portfolio and our North Sea assets in particular. We believe our
performance and outlook reflect a truly differentiated opportunity
that will provide significant value accretion in the coming years.
With our financial position and our asset portfolio now in
excellent shape, our strategy over the next five years is to focus
on growing North America with the
support of significant free cash flow generated by our Egypt and North Sea operations. At the same
time, we believe that our international regions, and the North Sea
in particular, have significant upside potential that will create
value for Apache shareholders beyond its near-term
free-cash-flow-generation potential," said John J. Christmann, IV, Apache's chief executive
officer and president.
Apache enjoys an advantaged position in the North Sea
The North Sea region plays an important role in the overall
Apache portfolio by providing competitive investment opportunities
across multiple time horizons, exposure to an asset base that is
less sensitive to oil price volatility and potential reserve upside
with high-impact exploration potential. With industry-leading
production efficiency of 92 percent, approximately 50 percent lower
operating costs and materially advantaged infrastructure and
offtake capabilities, Apache's position in the North Sea is highly
differentiated.
Forties field is proving very resilient, and Beryl area
offers significant exploration upside
The Forties field has produced more than 2.6 billion barrels of
oil and has recovered more than 50 percent of the resource in place
over the past 40 years. With the size of the remaining
resource estimated at nearly 2.5 billion barrels, even small
incremental improvements in the recovery factor can result in
significant reserve and production gains. Notably, every 1 percent
increase in recovery factor equates to approximately 50 million
barrels of additional recoverable reserves.
Beryl, is a geologically complex area with multiple fields and
stacked pay potential providing significant exploration
opportunity. Following the completion of the first 3-D shoot since
1997, Apache recently announced two exceptional discoveries in the
area and is moving ahead with development and additional
exploration efforts.
Since the acquisition of these two fields, Apache has invested
nearly $2.6 billion in infrastructure
and is now reaping the benefits of this investment as a higher
percentage of capital dollars is now being directed to drilling and
production. Over the past four years, Apache invested 44 percent of
its capital on infrastructure, yet over the next five years, it is
estimated the company will only spend 12 percent of its annual
capital on infrastructure requirements. The result will be
improving capital efficiency, and all else being equal, improving
returns on capital employed.
Significant reserves potential underscores longevity and
upside for the region
Apache estimates its total net unrisked reserve potential in the
North Sea is 574 million to more than 1 billion barrels of oil
equivalent, none of which was booked at year-end 2014. This
potential represents an opportunity of four to seven times Apache's
year-end 2014 proved reserves in the North Sea of approximately 145
million barrels of oil equivalent. Assuming historical development
and exploration success rates, Apache believes it can sustain both
reserves and production at current levels for at least another five
years while generating significant free cash flow.
"The North Sea region plays a key role in the Apache portfolio,
and our assets are highly differentiated from other operators in
the area. We can either sustain or grow our reserves, production
and free cash flow at high rates of return, depending on how much
capital we ultimately allocate there. We will be able to achieve
this because we have high-quality assets coupled with an
infrastructure advantage, a cost advantage and a very large
exploratory and development inventory. I am proud of what we have
delivered this year and am even more excited about what we are
positioned to deliver in the future," said Christmann.
Webcast presentation
Today's presentation will be webcast live from the company's
website, www.apachecorp.com, beginning at 9
a.m. Central time. The presentation and webcast will be
archived on Apache's website.
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt and the United Kingdom. Apache posts announcements,
operational updates, investor information and copies of all press
releases on its website, www.apachecorp.com, and on its Media and
Investor Center mobile application, which is available for free
download from the Apple App Store and the Google Play Store.
Forward-looking statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as "anticipates,"
"intends," "plans," "seeks," "believes," "estimates," "expects",
"guidance" and similar references to future periods. These
statements include, but are not limited to, statements about future
plans, expectations, and objectives for Apache's operations,
including statements about planned drilling activity, future
production and exploration prospects in the United Kingdom sector of the North Sea. While
forward-looking statements are based on assumptions and analyses
made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See "Risk Factors" in our 2014 Form 10-K filed with the Securities
and Exchange Commission for a discussion of risk factors that
affect our business. Any forward-looking statement made by us in
this news release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future development, or otherwise, except as may be required by
law.
Cautionary note to investors
The United States Securities and Exchange Commission ("SEC")
permits oil and gas companies, in their filings with the SEC, to
disclose only proved, probable, and possible reserves that meet the
SEC's definitions for such terms. Apache may use certain terms in
this earnings release operations supplement, such as "resources,"
"potential resources," "resource potential," "estimated net
reserves," "recoverable reserves," and other similar terms that the
SEC guidelines strictly prohibit Apache from including in filings
with the SEC. Such terms do not take into account the certainty of
resource recovery, which is contingent on exploration success,
technical improvements in drilling access, commerciality and other
factors, and are therefore not indicative of expected future
resource recovery and should not be relied upon. Investors are
urged to consider carefully the disclosure in Apache's Annual
Report on Form 10-K for the fiscal year ended December 31, 2014, available from Apache at
www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd.,
Suite 100, Houston, Texas 77056
(Attn: Corporate Secretary). You can also obtain this report from
the SEC by calling 1-800-SEC-0330 or from the SEC's website at
www.sec.gov.
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SOURCE Apache Corporation