Western Australian Premier formally opens Apache-operated Devil Creek domestic gas project

Western Australian Premier formally opens Apache-operated Devil Creek domestic gas project

Devil Creek, Western Australia, 25 February, 2012 - Apache Energy today marked the official opening of the Devil Creek Gas Plant by the Premier of Western Australia and Minister for State Development, the Hon. Colin Barnett MLA.

The development, located in the northwest of Western Australia, represents an investment of approximately AUS$1.1 billion by Apache and its joint venture partner, Santos (Apache 55%/Santos 45%).

The development includes the Reindeer gas field, wellhead platform and raw gas pipeline, the Devil Creek Gas Plant and the Devil Creek Sales Gas Export Pipeline that ties into the Dampier to Bunbury Natural Gas Pipeline.

The Devil Creek Gas Plant is a two-train facility designed to safely process 200 million cubic feet of gas per day (220 Terajoules of gas per day) and 1,000 barrels per day of condensate. There is sufficient land within the existing plant for expansion of gas processing facilities.

"Devil Creek and the Reindeer Field demonstrate Apache's commitment to Western Australia as a key element in our global portfolio," G. Steven Farris, Apache Corporation's chairman and chief executive officer, said at the official opening. "The Carnarvon Basin has significant resources yet to be discovered, and it will be a focus of Apache's exploration activities for many years."

Also participating in the opening were the U.S. Ambassador to Australia, the Hon. Jeffrey Bleich, and the U.S. Consul General to Western Australia, Ms Aleisha Woodward.

The Devil Creek Gas Plant is the State's third domestic natural gas processing hub and the first new domestic gas plant built in Western Australia for over 15 years.

"The Devil Creek Gas Plant and Reindeer Field further consolidate Apache Energy's ongoing commitment to Western Australia and our position as a major supplier of domestic gas for the Western Australian market," said Thomas M. Maher, Managing Director of Apache Energy .

CITIC Pacific is the foundation customer for the Reindeer Field gas that will be used to generate power at its Sino Iron magnetite project nearby. Through Apache Energy Limited and other Australian subsidiaries, Apache Corporation is the second-largest operated-volume producer of oil and gas in the Carnarvon Basin.

"Devil Creek will enable us to increase our domestic gas sales to the Western Australian market where we already have an established profile," Maher said. Devil Creek is the second Apache-operated gas processing plant in Western Australia. Our involvement in the Chevron-operated Wheatstone Project and BHP Billiton's Macedon Project will see this commitment continue to grow in the next few years," he said.

About Apache Apache Corporation is a Houston-based oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all news releases on its website, www.apachecorp.com.

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