HOUSTON, Sept 06, 2005 /PRNewswire-FirstCall

 

Apache Corporation (NYSE, Nasdaq: APA) said today that, seven days after Hurricane Katrina, 76 percent of its gross operated natural gas production shut-in because of the storm and 60 percent of operated oil production in storm-affected areas have been restored to pre-storm levels.

In anticipation of the storm, Apache curtailed 565 million cubic feet (MMcf) per day of operated gas production and 70,120 barrels per day of oil production. A total of 430 MMcf of gas per day and 41,900 barrels of oil per day has been restored.

Approximately 28,200 barrels per day of oil production and 135 MMcf per day of gas production remain shut-in as a result of the hurricane. Of those volumes, 2,000 barrels per day of oil production and 15 MMcf per day of gas production are ready to be restored as soon as pipelines and other third-party facilities are returned to service. The company expects additional production to be restored in coming weeks as damage is assessed and repaired.

"Apache personnel and contractors have done an outstanding job bringing our Gulf Coast fields -- both offshore and onshore -- back on production," said G. Steven Farris, president and chief executive officer. "People are working 24 hours a day to repair storm damage and restore production as soon as possible."

In all, Apache's Gulf Coast Region is currently producing 83 percent of its normal gross operated gas volumes and 63 percent of its normal oil volumes.

Apache carries insurance coverage for its facilities and has up to $150 million of business interruption insurance to help defray the cost of an extended shut-in.

Apache Corporation is a large gas and oil independent with core operations in the United States, Canada, Egypt, the United Kingdom North Sea and Australia.

This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations and beliefs regarding Apache's Gulf of Mexico production. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements is damage to Apache's Gulf of Mexico facilities and the availability of needed equipment and personnel to restore production. There is no assurance that Apache's expectations will be realized, and actual timing of the resumption of deliveries may differ materially from those expressed in the forward-looking statements.

SOURCE Apache Corporation

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