Apache Corp (APA) at Howard Weil

Apache Corp

Apache is first up on Tuesday morning and it must have been a rough night at the Bourbon House last night as the room is shockingly empty.

Management is focusing on its three growth areas – Egypt, Australia and Canada.

Egypt – Increased gas threefold since 2001 – 50% up on oil production. Very active here – 282 wells planned – 40 exploration.

Australia – 47 wells to be drilled, also 4 development projects will add 80K BOE/D by year end 2011.- 14% of total production. Revenue to go up much more than gas production in Australia.

Canada – Ootla Shale Play in British Columbia – 44,000 gross acres in play. Recovery is 9-16 TCF of gas at 20% recovery. Two challenges – only winter drilling – lack of infrastructure to support major drilling.

Unbooked resource potential – 120 k barrels a day of production coming on line through 2011.

Tremendous exploration program going on this year at Apache.