Apache Corporation posted Q1 2011 production up 25% to 732,000 boe from 586,000 boe in the first quarter 2010. Liquids production increased 57,000 bpd to 358,000 bpd, which enabled Apache to achieve stand-out earnings and cash flow as a leading beneficiary of rising oil prices. Liquid hydrocarbons represented 49% of quarter production. Approximately 60% of the company’s oil production came from operations outside North America.
Apache’s operational data for year end 2010 comparing to peers:
Last year, Apache grew substantially with three large acquisitions. A $2.7 billion takeover of Houston’s Mariner Energy gave the company its first significant presence in the deep-water Gulf of Mexico. It also paid BP $7 billion for production in Canada, the U. S. Permian Basin, and Egypt; and struck a $1 billion deal with Devon to acquire shallow-water properties in the Gulf of Mexico.
Source: Derrick Petroleum - Global Oil & Gas M&A 2010 Review Report
Milestones during the Quarter:
The company is in the planning stages for the Kitimat liquefied natural gas terminal in northwestern Canada, and expecting a final investment decision on that facility later this year or early next year, with first gas expected in 2015.
Apache’s operational data for year end 2010 comparing to peers:
Last year, Apache grew substantially with three large acquisitions. A $2.7 billion takeover of Houston’s Mariner Energy gave the company its first significant presence in the deep-water Gulf of Mexico. It also paid BP $7 billion for production in Canada, the U. S. Permian Basin, and Egypt; and struck a $1 billion deal with Devon to acquire shallow-water properties in the Gulf of Mexico.
Milestones during the Quarter:
- Development well in the Forties field (North Sea), which came online at approximately 11,800 boepd.
In the Permian Basin, Apache is operating 24 rigs, up nearly five-fold from a year ago. Targeting primarily oil objectives, Apache drilled 110 wells including 15 horizontals during the first quarter.
- Drilled six wells in Anadarko basin’s Granite Wash formation, every well has tested in excess of 1,000 barrels of oil and 2 mcfpd.
- In Egypt, Apache operated 22 rigs during the quarter, drilling 33 wells, including the company’s first wells in the Tayim development lease in West Kalabsha producing from deeper Paleozoic pay. Apache’s production remained online throughout the quarter, increasing sequentially from the previous three months.
"We continue to strengthen our land position, both in North America and internationally. Our LNG initiatives, Kitimat in Canada and Wheatstone in Australia, are steadily progressing toward project sanction with their respective joint venture partnerships," Farris said.
Plans to raise capital expenditures by 8%
The company now plans to spend $8.12 billion in 2011, up from its forecast for $7.5 billion. “The bulk of the increase will be spent in the second half of the year, so the company's 2011 production outlook for growth of 13% to 17% remains unchanged”, Chambers said.
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