Offshore staff

HOUSTON -- Apache Corp. reports its Gnu-1 exploration/appraisal well in the Reindeer/Caribou field in WA 209P off Australia's Northwest Shelf tested 26 MMcf/d and 61 b/d from the North Rankin formation.

Apache operates the well with a 55% working interest along with a non-operator partner Santos Ltd., which has 45%.

Apache logged the Gnu-1 well indicating 378 ft of net pay in the Legendre Formation, the main reservoir, which is 78 ft of new pay (more than previously seen in the field). The Legendre pay zones, approximately 3,500 ft uphole from the North Rankin reservoir, will not be tested as an earlier Legendre well tested 35 MMcf of gas and 165 b/d. After Apache develops the field for production, the Legendre sands are expected to deliver in excess of 100 MMcf/d.

Apache tested the North Rankin Formation on a 1 1/4 -in. choke with 954 psi of flowing wellhead pressure with perforations between 11,259 ft and 11,287 ft measured depth. The well is 56 miles offshore in the northeast section of Apache's Carnarvon basin acreage in 200 ft of water.

"This well brings our expected gross recoverable reserves at the Reindeer/Caribou field to half a trillion cubic feet of natural gas," said Apache CEO, president and COOG, Steven Farris. "We plan to develop this field with an objective of first production in 2008. With five additional seismically defined prospects in the immediate vicinity, the first of which we plan to spud later this year, the growth potential of this area is significant."

The company's existing contracts includes part of the gas with ample market opportunities existing for the rest. Apache's development options, including the possibility of a new pipeline to the mainland, are being evaluated.

8/14/06