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Apache's Pyrenees Project Offshore Western Australia to Add 20,000 Barrels Per Day to Worldwide Production

HOUSTON, July 3, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that it will proceed with development of the Pyrenees fields in the Exmouth Sub-basin offshore Western Australia. When completed, the project is expected to add 20,000 barrels per day to Apache's net worldwide oil output.

"Pyrenees is one of six large-scale development projects that are expected to add an aggregate of 108,000 barrels of oil equivalent per day to Apache's worldwide production by 2010," said G. Steven Farris, Apache's president and chief executive officer. "We also have a deep inventory of high-potential exploration plays and prospects in Apache's core growth areas of Australia, Canada and Egypt, many of which are scheduled to be drilled this year."

The Pyrenees fields of Crosby, Ravensworth and Stickle were discovered in the WA-12-R and WA-155-P blocks in 2003 and 2004. Water depth in the development area is 560 to 820 feet (170 to 250 meters). The double-hulled floating production, storage and offloading (FPSO) vessel to be used at Pyrenees will have capacity to process approximately 96,000 barrels of oil a day and storage for 850,000 barrels. Oil will be exported via shuttle tankers.

Apache has a 28.57 percent interest in License WA-12-R. The US $1.7 billion BHP Billiton-operated development includes purchase of the FPSO as well as 13 subsea wells tied back to the facility.

Development of WA-155-P, where Apache owns a 31.5 percent interest, will follow development of WA-12-R. Apache's possessive estimates of the gross recoverable oil reserves in the two blocks in the development area is 80 million to 120 million barrels of oil.

Also in the Exmouth Sub-basin, Apache recently sanctioned its $500 million Van Gogh development and drilled the project's first horizontal well, the Theo 3-H, which flowed 9,694 barrels of oil per day in a production test. When Van Gogh comes on line in 2009, the project is expected to add 20,000 barrels per day to Apache's net worldwide oil output. Apache owns 52.5 percent of the development.

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

This news release contains certain "forward-looking statements" as defined by 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. Risks, uncertainties and other factors are discussed in the Form 10-K of Apache Corporation for the fiscal year end December 31, 2006, and other documents filed from time to time by Apache with the Securities and Exchange Commission. 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.

APA-AU

SOURCE Apache Corporation

media, Bill Mintz, +1-713-296-7276, or investors, Robert Dye, +1-713-296-6662, or
David Higgins, +1-713-296-6690, all of Apache Corporation

http://www.apachecorp.com

Copyright (C) 2007 PR Newswire. All rights reserved

News Provided by COMTEX

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.

Apache news releases are archived on this Web site for historical purposes. While the information in the releases was accurate at the time of release, information regarding the matters discussed in the releases, including material information, changes over time. Information in a release may, therefore, no longer be accurate or in effect after the date of the release, and Apache undertakes no duty to update such information.