1、2000 Post Oak BoulevardSuite 100Houston,TX 77056-Consistent Profitable Growth2012 ANNUAL REPORTConsistent Profitable Growth Apache 2012 Annual ReportOur MissionGrow a profitable global exploration and production company in a safe and environmentally responsible manner for the long-term benefit of ou
2、r shareholdersCore ValuesSince 1954,Apache has built a team unified by our values,our commitment to building shareholder value,and our culture,which empowers every employee to make decisions and achieve the companys goals.Our global team is brought together by a sense of ownership and the knowledge
3、that best answers win.Our core values are:?sense of urgency;?contrarian spirit;?our people;?top performance and innovation;?respect and dignity;?Safety is not negotiable and will not be compromised;?environmental responsibility seriously;and?honesty and integrity.Apaches Website:Apaches website prov
4、ides a large quantity of additional company and financial data,including:?worldwide operations: and history: Social Media Sites?Apaches 2012 Sustainability Report?our efforts to promote socially responsible business practices while growing a profitable global exploration and production company for t
5、he?commitment to the environment,health and safety,and community in our search for new and productive ways to enrich the lives of our?please go to http:/ Media and Other Stakeholder Inquiries?via email or a phone call to one of the persons below.?DRILLING TODAY FOR NEAR-TERM GROWTH How were going to
6、 do it Key Components of Our Growth Plans:Infill development drilling,extension wells and near-field prospects,and horizontal completions provide more predictable,repeatable and low-risk growth opportunities from year to year.Apache has a deep backlog of these targets in its portfolio.On the cover:A
7、pache drilled a record number of wells during?Future growth through mid-to long-term developmentssaFe,sustainable and sound operations relentless Focus on improvement Apache built project execution expertise through complex onshore and offshore developments.We are leveraging this experience to deliv
8、er world-class facilities in Australia,Canada,Egypt and the UK North Sea.New ventures exploration provides additional growth opportunities.We are committed to finding sustainable answers to the environmental,health and safety challenges of our business as we build shareholder value.We proactively pu
9、rsue ideas to improve safety,reduce the footprint of our operations and support the communities where we work and live.The ability to optimize operations has long been a hallmark of Apache.In 2012,over 2,100 ideas were implemented by field-level employees through our unique AIM UP program,resulting
10、in an estimated 12-month value impact exceeding$535 million.Drilling activities are looking up.Apache drilled 1,150 net new wells during 2012 with a success rate of 95 percent.Our portfolio includes opportunities in nearly every play type:conventional,unconventional,onshore and offshore,both in dome
11、stic and international basins.From drill-ready targets to world-class,multi-well developments,Apaches growth prospects have never been more robust.We are well positioned to deliver near-and long-term profitable growth.Performance HighlightsConsistent Profitable Growth2 2012 Annual Report(dollars in
12、millions,except per share data)Year Ended December 31 2012 2011 2010FINANCIAL HIGHLIGHTSRevenues$17,078$16,888$12,092Income(loss)Attributable to Common Stock 1,925 4,508 3,000Diluted Net Income(loss)per Common Share 4.92 11.47 8.46Adjusted Earnings*3,767 4,651 3,172Adjusted Earnings per Common Share
13、*9.48 11.83 8.94Cash from Operations Before Changes in Operating Assets and Liabilities:*Net Cash Provided by Operating Activities 8,504 9,953 6,726 Changes in Operating Assets and Liabilities 1,741 281 642Cash from Operations Before Changes in Operating Assets and Liabilities$10,245$10,234$7,368Tot
14、al Assets$60,737$52,051$43,425Long-Term Debt 11,355 6,785 8,095Shareholders Equity 31,331 28,993 24,377Cash Dividends paid per Common Share 0.66 0.60 0.60OPERATIONAL HIGHLIGHTSTotal Capital Expenditures$14,608$11,793$18,230(including acquisitions,gas gathering,transmission and processing facilities,
15、and capitalized interest)Natural Gas Production(MMcf/d)2,293 2,262 1,889Oil and NGL Production(Mbbls/d)396 371 343Proved Reserves(MMboe)2,852 2,990 2,953*Non-GAAP Financial Measure:This annual report discusses Apaches cash from operations before changes in operating assets and liabilities.Management
16、 believes the information is useful for investors because it is used internally and widely accepted by those following the oil and gas industry as a financial indicator of a companys ability to generate cash to internally fund exploration and development activities,fund dividend programs,and service
17、 debt.It is also used by research analysts to value and compare oil and gas exploration and production companies,and is frequently included in published research when providing investment recommendations.Cash from operations before changes in operating assets and liabilities,therefore,is an addition
18、al measure of liquidity,but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating,investing,or financing activities.This annual report also discusses Apaches Adjusted Earnings,which exclude certain items that management belie
19、ves affect the comparability of operating results and are meaningful for the following reasons:Management uses Adjusted Earnings to evaluate the companys operational trends and performance relative to other oil and gas producing companies;management believes this presentation may be useful to invest
20、ors who follow the practice of some industry analysts who adjust reported company earnings for items that may obscure underlying fundamentals and trends;and the reconciling items are the types of items management believes are frequently excluded by analysts when evaluating the operating trends and c
21、omparability of the companys results.For a reconciliation of adjusted earnings to income attributable to common stock,the most directly comparable GAAP financial measure,please see“Non-GAAP Measures”in Item 7 of the attached Form 10-K.Cautionary Note to Investors:The United States Securities and Exc
22、hange Commission(“SEC”)permits oil and gas companies,in their filings with the SEC,to disclose only proved,probable,and possible reserves that meet the SECs definitions for such terms.Apache may use certain terms in this annual report,such as“resource,”“resource potential,”potential reserves,and oth
23、er similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC.Such terms do not take into account the certainty of resource recovery,which is contingent on exploration success,technical improvements in drilling access,commerciality and other factors,and are
24、 therefore not indicative of expected future resource recovery and should not be relied upon.Investors are urged to consider carefully the disclosure in Apaches Annual Report on Form 10-K for the fiscal year ended December 31,2012,available from Apache at or by writing Apache at:2000 Post Oak Blvd.,
25、Suite 100,Houston,Texas 77056(Attn:Corporate Secretary).You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SECs website at www.sec.gov.Forward-Looking Statements:Certain statements in this annual report contain“forward-looking statements”within the meaning of Section
26、27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934.Whenever possible,these“forward-looking statements”are identified by words such as“expects,”“believes,”“anticipates,”“projects,”and similar phrases.Any matters that are not historical facts are forward-looki
27、ng 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,recent Quarterly Reports on Form 10-Q,recent Current Reports on Form 8-K available on our websit
28、e,http:/ in our other public filings and press releases.These forward-looking statements are based on Apache Corporations(Apache)current expectations,estimates and projections about the company,its industry,its managements beliefs and certain assumptions made by management.Because such statements in
29、volve risks and uncertainties,no assurance can be given that such expectations,estimates or projections will prove to have been correct.A number of factors could cause actual results to differ materially from the projections,anticipated results or other expectations expressed in this annual report,i
30、ncluding,Apaches ability to meet its production targets,successfully manage its capital expenditures and to complete,test and produce the wells and prospects identified in this annual report;to successfully plan,secure necessary government approvals,finance,build and operate the necessary infrastruc
31、ture and LNG plants;and to achieve its production and budget expectations on its projects.Given these risks and uncertainties,you are cautioned not to place undue reliance on such forward-looking statements,which speak only as of the date hereof.Unless legally required,we assume no duty to update th
32、ese statements as of any future date.However,you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.3Fellow Shareholders,Apache posted another year of progress in 2012 and is positioned to continue to deliver consistent,long-term,
33、profitable growth.Our strategy to build a global,diversified portfolio of oil and gas properties with a focus on high-value,high rate-of-return activities again delivered a substantial financial and operating performance.Significant highlights for the year include:Achievedrecordproductionforthefourt
34、hconsecutiveyear779,000barrelsofoilequivalent(boe)per day.Deliveredcashfromoperationsbeforechangesinoperatingassetsandliabilities*of$10.2 billion for the second consecutive year.Replaced156percentoftheyearsproductionthroughdiscoveries,extensionsandacquisitions,excluding negative revisions associated
35、 primarily with low Canadian gas prices.FirmlyestablishedthePermianandAnadarkobasinsasU.S.growthengines,adding312,000 acres in Oklahoma and the Texas Panhandle and accelerating drilling activities in these areas.ExpandedouropportunitysetandincreasedproductioninourUKNorthSearegion to 75,000 boe per d
36、ay,as discoveries and newly acquired properties were brought onstream under Apache operatorship.AnnouncedasecondLNGpartnershipwithChevroninDecember2012attheproposedKitimat project in western Canada.We hold a 50-percent working interest in Kitimat LNG,where estimated gross production from a single tr
37、ain totals in excess of 700 MMcf per day.Generatedrecordannualrevenuesof$17.1billion.We are fiscally strong and have an extensive inventory of near-term and future development projects,prospects and exploration ventures that will contribute to our profitable growth over the next five-plus years.Apac
38、he is opportunity rich,and a challenge we face is balancing capital allocation to generate near-term growth with investments to fund future developments while maintaining our historical fiscal discipline.Our pipeline of mid-to long-term projects has the potential to produce billions of dollars in ex
39、cess cash flow,serving as cornerstones for continuing growth.left to right,RODNEY J.EICHLERPresident and Chief Operating Officer G.STEVEN FARRISChairman and Chief Executive OfficerROGER B.PLANKPresident and Chief Corporate Officer779,000 boeper dayRecord daily production averaged in 2012;the company
40、s compound annual growth rate from 19922012 is approximately 12 percent2.9 billion boeYear-end 2012 estimated proved reserves;replacing 156 percent of the preceding 12 months production through discoveries,extensions and acquisitions$10.2 billionCash flow exceeded$10 billion dollars for the second c
41、onsecutive year*Cash from operations before changes in operating assets and liabilities is a non-GAAP measure.Please see reconciliation on page 2.Highlights from 2012 Global ProgressSince mid-year 2010,Apache has enhanced our asset base in every core area by completing seven major oil and gas acquis
42、itions and through targeted acreage purchases.This past year,we accelerated our drilling activities on newly added properties with a focus on oil and liquids production in North America.OilandnaturalgasliquidsproductionintheUnitedStatesincreased18percentfromthe prior year,with significant contributi
43、ons from numerous Permian and Anadarko basin plays.Apachehad111rotaryrigsoperatingworldwideindrillingorcompletionactivitiesatyear-end 2012,a 29-percent increase compared to the same period in the prior year.Internationalgasassetsdeliveredmorevalue,withnaturalgaspricerealizationsup 13percentfortheyea
44、rto$4.15perMcf,toppingourNorthAmericangasrealizationsfor the first time since 1995.International gas production increased 10 percent to 839 MMcf per day,boosting our earnings throughout the year.InAustralia,wecommencedproductionfromourReindeergasfieldandDevilCreekprocessing plant,the first new gas p
45、rocessing hub in Western Australia in more than 15 years.Near-Term Growth:Focus on North AmericaThe United States remains the worlds highest demand market for hydrocarbon products.Whilethedomesticoilandgasindustryisconsideredmature,technologyhasrevitalizedthe industry,reversing a multi-decade declin
46、e in domestic oil production.Apache is at the forefront of this resurgence,and our 2013 drilling program is designed to accelerate value realizationfromourexpandedpropertybase.Apache conducted extensive field studies across all of our properties in the Anadarko and Permian basins during 2012.This in
47、itiative identified more than 67,000 prospective well locations and 9.2 billion boe in resource potential.Drilling activity steadily increased throughout the year,with the number of operated rigs in our Central Region increasing from seven to 25.In the Permian Basin,weve ramped up from an average of
48、 five rigs operating in 2010 to 32 rigs in 2012,with an increasing percentage of wells being drilled formoreprolifichorizontalcompletions.Both regions provide multiple ways to win:thick,oily and liquids-rich,stacked-pay drilling targets provide attractive economics with reduced geologic risk.Additio
49、nal upside potentialexiststhroughdown-spacing,step-outandhorizontalopportunities.Whilewerenotcurrentlytargetinganydrygas-bearingzones,weknowtheyrethere,offering a valuable option when natural gas prices ultimately recover.A similar field analysis is under way in Canada,and our inventory of drilling
50、locations in North America is expected to more than double once these studies are complete.This type of rigorous examination of our properties also will be undertaken across our international assets.Creating the Future:Developing Legacy AssetsApaches portfolio has evolved since 2010,reinforcing our
51、ability to achieve the longstanding objective of consistent,profitable growth.Whether in frontier regions not yet fully explored or in projects requiring greater capital and longer cycle times for infrastructure development,our property base offers the potential for long-life,legacy assets that can
52、provide robust cash flow year after year.Consistent Profitable Growth4 2012 Annual ReportFellow Shareholders,continuedThe Permian and Anadarko basins provide multiple ways to win:thick,oily and liquids-rich,stacked-pay drilling targets,with added upside potential through down-spacing,step-out and ho
53、rizontal opportunities.67,000locationsTechnically identified drilling locations on Apaches Permian Basin and Anadarko Basin properties onshore North America During2014,ourConistonandBalnavesoilprojectsareprojectedtocommenceproduction.These two floating production and storage facilities will be based
54、 offshore Western Australia,adding an estimated 30,000 boe per day in initial gross production when fully online.NorthSeaexpansionisunderwaywiththeinstallationofanewsatelliteplatformatForties.This will add 18 new drilling slots to more fully recover Forties oil reserves,whichcurrentlyrealizepremiump
55、ricingontheworldmarket.DevelopmentofourJulimarandBrunellofieldsoffshoreWesternAustraliacontinueswith initial production scheduled to coincide with startup of two trains at Wheatstone LNG,a Chevron-operated joint venture projected to come online at year-end 2016.Apaches net daily production from thes
56、e fields will be an estimated 140 MMcf of natural gas and 3,250 barrels of oil.Ournewventuresinitiativesaccumulatedattractivelandpositionsinseveralnewplays.Early identification and capture of these opportunities enabled Apache to build advantageous acreage holdings at a relatively low cost,such as t
57、he Vaca Muerta shale oil play in Argentina and the Cook Inlet in Alaska.KitimatLNGisintendedasameansforApachetomonetizeanestimated50Tcfnatural gas resource at prices linked to crude oil.The new joint venture plays to each partners strengths,with Apache operating the upstream assets and Chevron overs
58、eeing the LNG marketing,plant and pipeline.We constantly examine the commercial potential of our properties to ensure that we focus capital spending on the most attractive opportunities.This also allows us to identify those assets that may have more value with a partner or other operator.To high gra
59、de our portfolio and further strengthen our balance sheet,we are targeting$2 billion in divestitures this year.Looking Ahead:Balancing Growth,Risks,RewardsApache enters 2013 with production at 800,000 barrels of oil equivalent a day.Estimated proved reserves at year-end approached 3 billion barrels
60、of oil equivalent.In this report,we highlight near-term drilling opportunities that can increase production this year and planneddevelopmentsthatcanprovidefuturegrowth.Werecognizethatsustainablegrowth must occur while operating in a safe and environmentally responsible manner,focusing on returns,gro
61、wth and costs.Apaches unique culture has fostered AIM UP(Apache Improvement Method through Understanding Performance),a program that encourages suggestions from our field personnel to increase production and reduce costs.Reducing the decline rate in our base properties better sustains future product
62、ion growth.Our position in Egypt was a significant factor in our stock performance last year.Media coverage of the political transitions there continues to cause investor concern.We have met regularly with elected and appointed officials in Egypt,who have signaled that business will proceed as it ha
63、s in the past.Our production and drilling operations continue without interruption.In the year ahead,we plan to stay the course in Egypt,monitoring the situation closely.Apaches portfolio strategy has long been driven to balance our oil and gas production mix,a goal other E&P companies strive for to
64、day.Financial discipline has been and continues to be a hallmark of our strategy.Apache is your company,and we thank you for your continued support.Based on the companys solid financial position,strong cash generating capacity and our confidence in the ability to continue to execute,Apaches Board of
65、 Directors again increased the common dividend,marking a one-third increase over the last two years.The Apache workforce has never been more talented,more committed,better trained and equipped to deliver on our growth plans.5+18 percentYear-over-year increase in Apaches U.S.crude oil and natural gas
66、 liquids production in 2012Key 2012 statisticsDiversity Mitigates VolatilityApaches balanced portfolio helps to shield the company from price volatility,such as North America natural gas during the past year.In 2012,81 percent of the companys revenues came from liquids production,which represented 5
67、1 percent of the companys production.Revenue$17.1 BillionAdjusted Earnings*$3.8 BillionAverage Market PricesBrent:$112/bblWTI:$94/bblHH Gas:$2.83/Mcf2012 Productionn International Gas 18%n North America Gas 31%n International Liquids 27%n North America Liquids 24%G.STEVEN FARRISChairman and Chief Ex
68、ecutive OfficerROGER B.PLANKPresident and Chief Corporate OfficerRODNEY J.EICHLERPresident and Chief Operating OfficerFebruary 27,2013*Adjusted Earnings is a non-GAAP measure.Please see note on page 2.Consistent Profitable GrowthApache at a GlanceoperationsArGenTInAAusTrAlIA2012 HIGHLIGHTS2012 HIGHL
69、IGHTSLOOKING AHEADLOOKING AHEADDrilled28grosswellswith100%success rateAchievedrecorddaily production with substantial volumes(73 MMcf/d)at higher priced Gas Plus levelsDrilled15gross offshore wells,including 10 exploratory and appraisal testsBroughttheReindeer field and Devil Creek gas plant onlineE
70、xplorationsuccesswith Tallaganda gas discoveryParticipateinupto 20 gross wells during 2013,operating 16FocusonGasPlusdrillingprograms and Vaca Muerta explorationPlantodrill16grosswells during 2013,including six exploration wellsInitialproductionof the partner-operated Macedon gas field and processin
71、g plantContinuedevelopment ofJulimar/Wheatstone LNG,Coniston and Balnaves oil fields,Varanus gas compression projectApache drilled a record number of wells during 2012,building momentum into the year ahead.Your company achieved several new milestones,including:average daily production for the year o
72、f 779,000 boe and a quarterly production record of 800,000 boe per day.Approximately 51 percent of the companys production in 2012 was oil and natural gas liquids.unITeD sTATes40%of production and 50%of total estimated proved reserves with 12,341 net producing oil and gas wellseGYPT20%of production
73、and 10%of total estimated proved reserves with 1,011 net producing oil and gas wellsAusTrAlIA8%of production and 12%of total estimated proved reserves with 33 net producing oil and gas wellsuK norTH seA10%of production and 6%of total estimated proved reserves with 111 net producing oil and gas wells
74、cAnADA16%of production and 19%of total estimated proved reserves with 8,741 net producing oil and gas wellsArGenTInA6%of production and 3%of total estimated proved reserves with 780 net producing oil and gas wells6 2012 Annual ReportcAnADAeGYPT uK norTH seAunITeD sTATes2012 HIGHLIGHTS2012 HIGHLIGHTS
75、2012 HIGHLIGHTS2012 HIGHLIGHTSLOOKING AHEADLOOKING AHEADLOOKING AHEADLOOKING AHEADProductionaveraged122,000 boe per day Advancedseveraloilplays in the Viking,Glauconite and Sparky formationsAveraged25rigsduring the yearDrilled198grossnetwells,including 51 exploration testsDevelopmentleaseturnaround
76、time decreased to a low of 34 days versus nine months the prior yearRecorddailyproductionaveraged 75,000 boe per dayAwarded12newlicenses,operating 11Commencedseismicsurveyover Beryl and nearby fieldsRecordproductionfromPermian,Central and Gulf Coast regionsTransitionedtomoreliquidsproduction up 18%f
77、rom prior yearCommissionedand upgraded facilities to remove production bottlenecksPlantodrillupto150grosswells during 2013Continuetransitiontooil and liquids-rich playsTesthorizontalexploitationin new playsWorkwithpartnertoadvanceKitimat LNG to FIDPlantodrillupto 270 gross wells,including 60 explora
78、tory testsFocusonBahariya,AbuRoash,Jurassicand AEB targetsFurthertestapplication ofhorizontaldrillinginselectedzonesParticipatein27grosswells,up from 21 during 2012CommissionFortiesAlphaSatellite platformCommencenewseismic survey over Forties and Bacchus fieldsExpandapplicationof horizontaldrillingE
79、xplorationtestsinexistingand new operating regionsApplynewseismic technologies offshore to reveal undiscovered resourcesArGenTInANATURAL GAS PRODUCTION213,464 Mcf/dayNGL AND OIL PRODUCTION12,749 Bbls/dayPROVED RESERVES101,801 MboeGROSS ACREAGE (developed and undeveloped)4,403,489AusTrAlIANATURAL GAS
80、 PRODUCTION214,013 Mcf/dayNGL AND OIL PRODUCTION28,884 Bbls/dayPROVED RESERVES342,206 MboeGROSS ACREAGE (developed and undeveloped)7,938,505cAnADANATURAL GAS PRODUCTION600,680 Mcf/dayNGL AND OIL PRODUCTION22,088 Bbls/dayPROVED RESERVES540,913 MboeGROSS ACREAGE (developed and undeveloped)6,937,575eGY
81、PTNATURAL GAS PRODUCTION353,738 Mcf/dayNGL AND OIL PRODUCTION99,756 Bbls/dayPROVED RESERVES273,283 MboeGROSS ACREAGE (developed and undeveloped)9,735,410uK norTH seANATURAL GAS PRODUCTION57,457 Mcf/dayNGL AND OIL PRODUCTION65,310 Bbls/dayPROVED RESERVES169,190 MboeGROSS ACREAGE (developed and undeve
82、loped)723,090unITeD sTATesNATURAL GAS PRODUCTION854,099 Mcf/dayNGL AND OIL PRODUCTION167,650 Bbls/dayPROVED RESERVES1,424,286 MboeGROSS ACREAGE (developed and undeveloped)12,321,2972012 production&acreage03Worldwide ReservesMMboe1,657041,937052,1 1 7062,313072,446082,401092,367102,953112,990122,8520
83、3Worldwide ProductionMboe per day4170444805455065010756108534095831065811748127797Apache has built a deep backlog of low-risk,predictable drilling targets to maintain and grow production.Our inventory of near-term prospects provides a diverse set of growth opportunities.In most areas,wells can be co
84、nnected to existing infrastructure quickly,building momentum for higher production.Of the 1,150 net wells drilled by Apache last year,more than half were in the proven regions of the Permian and Anadarko basins in North America.Our ongoing developments in Egypt and the Gulf of Mexico Shelf and onsho
85、re regions also provide a steady number of ready-to-drill locations.Intheoil-richPermianBasin,Apache drilled 605 net wells last year with a 99 percent success rate.Year-over-year production increased 18 percent,and 72 percent comprised more valuable oil and natural gas liquids.TheAnadarkoBasinhasbec
86、omeourfastest-growing area.Production in 2012,which includes an acquisition completed in April,increased 37 percent over the prior year.In 2012 we drilled 101 net wells all but four horizontally with a 99 percent success rate.Apachedrilled196netwellsinEgyptduring 2012,including 51 exploration tests,
87、achieving an 88 percent success rate.With 7.9 million undeveloped acres,the company has a rich opportunity set for further growth and development.Byoperatingover600platformsandlease blocks in shallower waters of the Gulf of Mexico,Apache shortens the cycle time from discovery to production.High-rate
88、 wells provide robust cash flow for investment here and in other areas.Apacheholds1.4milliongrossacresin the onshore Gulf Coast,which delivers highly profitable wells by applying the latest technology to find new resources in proven basins.more predictable,near-term growthConsistent Profitable Growt
89、h8 2012 Annual ReportApache discovered the Canyon Wash oil play atBivinsRanchintheTexasPanhandle.more substantial,Future developmentsComplementing near-term opportunities,Apache has an inventory of larger projects that require multiple wells and additional infrastructure to monetize discoveries.New
90、venture plays also provide growth prospects with potentially larger,more material hydrocarbon resources.OffshoreWesternAustralia,several developments are in advanced stages of implementation.TheMacedongasdevelopment will come online later this year.TheBalnavesandConistonoil fields will commence prod
91、uction in2014.Julimar,whichwillprovidenatural gas feedstock to Wheatstone LNG,advances toward a 2016 projected startup.InadditiontoKitimatLNG,ourCanadian region is transitioning to more oil and liquids-rich production,evaluating several plays,including Sparky,BlueskyandViking.InArgentina,Apacheholds
92、anadvantageous position with 1.3 million gross acres in the emergingVacaMuertashaleplay,of which nearly half is prospective for unconventional oil.In 2013 we will continue testing the play to assess its commerciality and determine future development plans.9Workers inspect pipelines at Apaches Devil
93、Creek gas plant,Western Australias first in more than 15 years.cleaner,saFer,more sustainable operationsAchieving long-term goals requires finding sustainable answers to the environmental as well as operating challenges we face now and in the future.Our success in these efforts rewards the diverse s
94、takeholders in Apache,from investors,business partners and employees,to community members,governments and non-governmentorganizations.Recenthighlights in these initiatives include:Apachesgoalistoreachzeroincidentsandinjuries.Thetotalworkforce recordable injury rate in 2012 was 12 percent below the f
95、ive-year average ending in 2012.Our work-restricting injury rate was 2 percent below the five-year average,while total hours worked wereup54percent.InthePermianandAnadarko basins,Apache is at the forefront of using salt and brackish water instead of freshwater for new well completions.Apache also le
96、d initiatives for more transparency in completion operations and has posted details of every fracture-stimulation completion in the U.S.performedsinceJanuary1,2011,on fracfocus.org,a website that serves as a centralized data center for disclosure of chemicals used in hydraulic fracturing.OurNorthSea
97、andEgyptregionshave substantially reduced emissions and costs by replacing fuel oil with clean-burning natural gas.Wecontinueoursupportforeducation and the arts as a benefactorofFundforTeachers and Springboard:Educating the Future,as well as numerous other charities and foundations sponsored by our
98、local operations and employees.Apachestreeplantingprogramplanted its three-millionth tree this past year.Employees and other volunteers have reforested areas damaged by drought,tornadoes or other natural disasters.Consistent Profitable Growth10 2012 Annual ReportApache reuses platforms to create ree
99、f habitats in the Gulf of Mexico.more eFFicient,better-run operationsApaches ability to optimize its ongoing operations enhances the companys production and profitability every day.AIM UP,a continuous improvement program that empowers individuals to find ways for reducing costs and increasing produc
100、tion,is at the forefront of this effort.Highlights from the 2012 AIM UP program include the following:Installingadistillingtowerataprocessing plant in Argentina contributed$2.2 million in value by producing kerosene used as a process absorbent instead of purchasingit.Thetechnologyupgrade also increa
101、sed daily propane production while reducing operating expenses.A$25,000modificationatApachesFaghur processing plant in Egypts Western Desert kept production online during the facilities safety andcapacityupgrade.Thebypassmaintained$22.3 million worth of production that would otherwise have been defe
102、rred.AttheElRenofieldintheCentralRegion,weoutsourcedgascompression,eliminating equipment and associated costs,lowering line pressure and reducing emissions,whileincreasingproduction.Theproject contributed estimated annual value of$1.7 million.Byreroutinggasthatwasvented into an existing fuel system,
103、the Gulf of Mexico Shelf team reduced emissions,reduced fuel costs and reduced maintenance expense,realizingsavingsof$300,000.Thepilot program is being implemented at several other platforms,providing additional cost savings and improved environmental performance.In addition to our AIM UP program,th
104、roughout the year the companys engineering,production and operations experts held engaging and frank discussions about a variety of operationalpractices.Theycreatednew internal guidelines for onshore operations tailored to specific areas.We believe these actions help raise the quality of operations,
105、which ultimately creates and preserves value for shareholders.11Drilling under way in Argentinas TerraDelFuegoprovince;theregion initiated 189 AIM UP projects in 2012.Financial PerformanceConsistent Profitable Growth12 2012 Annual Report08Revenues$billions$12.409$8.610$12.111$16.912$17.108Earnings$m
106、illions$70609$(292)10$3,00011$4,50812$1,92508Net Cash Provided byOperating Activities$billions$7.0709$4.2210$6.7311$9.9512$8.5008Proved ReservesBboe2.40092.37102.95112.99122.85I GasI Liquids08Annual ProductionMmboe195.609212.910240.011273.112285.0I GasI Liquids08Capitalization$billions21.30920.81032
107、.51135.81242.7I EquityI LT Debtn Natural Gas 49%n Oil&Liquids 51%Productionn United States 40%n Canada 16%n Egypt 20%n Australia 8%n UK North Sea 10%n Argentina 6%2012 ProductionBOE/dn Natural Gas 19%n Oil&Liquids 81%revenuen United States 50%n Canada 19%n Egypt 10%n Australia 12%n UK North Sea 6%n
108、Argentina 3%2012 Proved reservesMboe2012 commodity mixAnnual Average Daily Production(Mboe)12%Compound Annual Growth Rate 199220129278.19385.594108.495148.596148.697170.398174.199204.300260.201344.102341.503417.404448.205454.506501.107561.208534.409583.310657.611748.112779.0UNITED STATES SECURITIES
109、AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)XANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31,2012or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition per
110、iod fromtoCommission file number 1-4300APACHE CORPORATION(Exact name of registrant as specified in its charter)Delaware41-0747868(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)One Post Oak Central,2000 Post Oak Boulevard,Suite 100,Houston,Texas 77056
111、-4400(Address of principal executive offices)Registrants telephone number,including area code(713)296-6000Securities registered pursuant to Section 12(b)of the Act:Title of each className of each exchangeon which registeredCommon Stock,$0.625 par valueNew York Stock Exchange,Chicago Stock Exchangean
112、d NASDAQ National MarketPreferred Stock Purchase RightsNew York Stock Exchange and Chicago Stock ExchangeApache Finance Canada CorporationNew York Stock Exchange7.75%Notes Due 2029Irrevocably and UnconditionallyGuaranteed by Apache CorporationDepositary Shares Representing a 1/20thInterest in a Shar
113、e of 6.00%MandatoryConvertible Preferred Stock,Series DNew York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:Common Stock,$0.625 par valueIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes X No Indicate
114、 by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No XIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities ExchangeAct of 1934 during the preceding 12 mo
115、nths(or for such shorter period that the registrant was required to file such reports),and(2)has beensubject to such filing requirements for the past 90 days.Yes X No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website,if any,every Interacti
116、ve DataFile required to be submitted and posted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(orfor such shorter period that the registrant was required to submit and post such files).Yes X No Indicate by check mark if disclosure of delinquent filers p
117、ursuant to Item 405 of Regulation S-K is not contained herein,and will not becontained,to the best of registrants knowledge,in definitive proxy or information statements incorporated by reference in Part III of thisForm 10-K or any amendment to this Form 10-K.Indicate by check mark whether the regis
118、trant is a large accelerated filer,an accelerated filer,a non-accelerated filer,or a smaller reportingcompany.See the definitions of“large accelerated filer,”“accelerated filer”and“smaller reporting company”in Rule 12b-2 of the Exchange Act.Large accelerated filer X Accelerated filer Non-accelerated
119、 filer Smaller reporting company Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act):Yes No XAggregate market value of the voting and non-voting common equity held by non-affiliates of registrant as ofJune 30,2012.$34,382,410,237Number of sh
120、ares of registrants common stock outstanding as of January 31,2013.391,758,883Documents Incorporated By ReferencePortions of registrants proxy statement relating to registrants 2013 annual meeting of stockholders have been incorporated by reference inPart II and Part III of this annual report on For
121、m 10-K.TABLE OF CONTENTSDESCRIPTIONItemPagePART I1.BUSINESS.11A.RISK FACTORS.211B.UNRESOLVED STAFF COMMENTS.322.PROPERTIES.13.LEGAL PROCEEDINGS.324.MINE SAFETY DISCLOSURES.32PART II5.MARKET FOR REGISTRANTS COMMON EQUITY,RELATED STOCKHOLDERMATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.336.SELECTE
122、D FINANCIAL DATA.357.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS.367A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.668.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.699.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING ANDFINANCIAL DISCLO
123、SURE.699A.CONTROLS AND PROCEDURES.699B.OTHER INFORMATION.69PART III10.DIRECTORS,EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.7011.EXECUTIVE COMPENSATION.7012.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENTAND RELATED STOCKHOLDER MATTERS.7013.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIO
124、NS,AND DIRECTORINDEPENDENCE.7014.PRINCIPAL ACCOUNTING FEES AND SERVICES.70PART IV15.EXHIBITS,FINANCIAL STATEMENT SCHEDULES.71iDEFINITIONSAll defined terms under Rule 4-10(a)of Regulation S-X shall have their statutorily prescribed meaningswhen used in this report.As used in this document:“3-D”means
125、three-dimensional.“4-D”means four-dimensional.“b/d”means barrels of oil or natural gas liquids per day.“bbl”or“bbls”means barrel or barrels of oil.“bcf”means billion cubic feet.“boe”means barrel of oil equivalent,determined by using the ratio of one barrel of oil or NGLs to six Mcfof gas.“boe/d”mean
126、s boe per day.“Btu”means a British thermal unit,a measure of heating value.“LIBOR”means London Interbank Offered Rate.“LNG”means liquefied natural gas.“Mb/d”means Mbbls per day.“Mbbls”means thousand barrels of oil.“Mboe”means thousand boe.“Mboe/d”means Mboe per day.“Mcf”means thousand cubic feet of
127、natural gas.“Mcf/d”means Mcf per day.“MMbbls”means million barrels of oil.“MMboe”means million boe.“MMBtu”means million Btu.“MMBtu/d”means MMBtu per day.“MMcf”means million cubic feet of natural gas.“MMcf/d”means MMcf per day.“NGL”or“NGLs”means natural gas liquids,which are expressed in barrels.“NYM
128、EX”means New York Mercantile Exchange.“oil”includes crude oil and condensate.“PUD”means proved undeveloped.“SEC”means United States Securities and Exchange Commission.“Tcf”means trillion cubic feet.“U.K.”means United Kingdom.“U.S.”means United States.With respect to information relating to our worki
129、ng interest in wells or acreage,“net”oil and gas wells oracreage is determined by multiplying gross wells or acreage by our working interest therein.Unless otherwisespecified,all references to wells and acres are gross.iiPART IITEMS 1 AND 2.BUSINESS AND PROPERTIESThis Annual Report on Form 10-K and
130、the documents incorporated herein by reference contain forward-looking statements based on expectations,estimates,and projections as of the date of this filing.Thesestatements by their nature are subject to risks,uncertainties,and assumptions and are influenced by variousfactors.As a consequence,act
131、ual results may differ materially from those expressed in the forward-lookingstatements.See Part II,Item 7AQuantitative and Qualitative Disclosures About Market RiskForward-Looking Statements and Risk of this Form 10-K.GeneralApache Corporation,a Delaware corporation formed in 1954,is an independent
132、 energy company thatexplores for,develops,and produces natural gas,crude oil,and natural gas liquids.We currently have explorationand production interests in six countries:the U.S.,Canada,Egypt,Australia,the U.K.North Sea(North Sea),andArgentina.Apache also pursues exploration interests in other cou
133、ntries that may over time result in reportablediscoveries and development opportunities.We treat all operations as one line of business.Our common stock,par value$0.625 per share,has been listed on the New York Stock Exchange(NYSE)since 1969,on the Chicago Stock Exchange(CHX)since 1960,and on the NA
134、SDAQ National Market(NASDAQ)since 2004.On June 7,2012,we filed certifications of our compliance with the listing standards ofthe NYSE and the NASDAQ,including our principal executive officers certification of compliance with theNYSE standards.Through our website,you can access,free of charge,electro
135、nic copiesof the charters of the committees of our Board of Directors,other documents related to our corporate governance(including our Code of Business Conduct and Governance Principles),and documents we file with the SEC,including our annual reports on Form 10-K,quarterly reports on Form 10-Q and
136、current reports on Form 8-K,aswell as any amendments to these reports filed or furnished pursuant to Section 13(a)or 15(d)of the SecuritiesExchange Act of 1934.Included in our annual and quarterly reports are the certifications of our principalexecutive officer and our principal financial officer th
137、at are required by applicable laws and regulations.Accessto these electronic filings is available as soon as reasonably practicable after we file such material with,orfurnish it to,the SEC.You may also request printed copies of our committee charters or other governancedocuments free of charge by wr
138、iting to our corporate secretary at the address on the cover of this report.Ourreports filed with the SEC are made available to read and copy at the SECs Public Reference Room at 100 FStreet,N.E.,Washington,D.C.,20549.You may obtain information about the Public Reference Room bycontacting the SEC at
139、 1-800-SEC-0330.Reports filed with the SEC are also made available on its website atwww.sec.gov.From time to time,we also post announcements,updates,and investor information on our websitein addition to copies of all recent press releases.Information on our website or any other website is notincorpo
140、rated by reference into,and does not constitute a part of,this Annual Report on Form 10-K.Properties to which we refer in this document may be held by subsidiaries of Apache Corporation.References to“Apache”or the“Company”include Apache Corporation and its consolidated subsidiaries unlessotherwise s
141、pecifically stated.Growth StrategyApaches mission is to grow a profitable global exploration and production company in a safe andenvironmentally responsible manner for the long-term benefit of our shareholders.Apaches long-termperspective has many dimensions,which are centered on the following core
142、strategic components:balanced portfolio of core assetsconservative capital structurerate of return focus1Throughout the cycles of our industry,these strategies have underpinned our ability to deliver long-termproduction and reserve growth and achieve competitive returns on invested capital for the b
143、enefit of ourshareholders.We have increased reserves 23 out of the last 27 years and production 32 out of the past 34 years,atestament to our consistency over the long-term.Apache pursues opportunities for growth through exploration and development drilling,supplemented byoccasional strategic acquis
144、itions.After a three-year period of significant portfolio expansion throughacquisitions,we have shifted our focus back to developing our enlarged property base.In 2012,we generatedapproximately$8.5 billion of cash flows from operating activities,which enabled us to have an active drillingand develop
145、ment program across all of our regions.As a result,we reported record production of 779 Mboe/d,upover four percent from the prior year.At the same time,we have also invested a larger portion of our capitalbudget on long-lead time projects than we have in the past.In 2012,we spent approximately one-q
146、uarter of ourcapital budget on purchasing additional leasehold acreage,obtaining seismic data,building infrastructure,andproceeding on long-lead development projects including LNG facilities.Coupled with an active drilling programand our new venture exploration efforts,these longer-term investments
147、secure a platform for future profitablegrowth.While we are focused on growth through the drill bit,we also seek acquisition opportunities that meet ourcriteria for risk,reward,rate of return,and growth potential.From April 2010 through the end of 2012,Apacheannounced several significant acquisitions
148、,each of which fit well with our long-term growth strategy.Theseproperties are strategically positioned with our existing infrastructure and play to the strengths that come with ouroperating experience.Our significant acquisitions and other transactions since 2010 are described below.2012 Transactio
149、nsChevron Kitimat transactionOn December 24,2012,Chevron Canada Limited(Chevron Canada)andApache Canada Ltd.(Apache Canada)entered into an agreement to build and operate the Kitimat LNG project.Pursuant to the agreement,each will become a 50-percent owner of the proposed Kitimat LNG plant,the Pacifi
150、cTrail Pipeline,and 644,000 gross undeveloped acres in the Horn River and Liard basins.Chevron Canada willoperate the LNG plant,which will be located on the northern British Columbia coast,and the pipeline;ApacheCanada will operate Horn River and Liard.The transaction closed on February 8,2013.Centr
151、al Anadarko basin acquisitionIn April 2012 Apache completed the acquisition of Cordillera EnergyPartners III,LLC(Cordillera),a privately held company,for$2.7 billion in cash and approximately 6.3 millionshares of Apache common stock.Yara Pilbara Holdings Pty Limited acquisitionOn January 31,2012,a s
152、ubsidiary of Apache EnergyLimited completed the acquisition of a 49-percent interest in Yara Pilbara Holdings Pty Limited(YPHPL,formerly Burrup Holdings Limited)for$439 million,including working capital adjustments.YPHPL is theowner of an ammonia fertilizer plant on the Burrup Peninsula of Western A
153、ustralia.2011 TransactionsNorth Sea acquisitionOn December 30,2011,Apache completed the acquisition of Mobil North SeaLimited(Mobil North Sea)from Exxon Mobil Corporation with cash consideration of$1.25 billion.2010 TransactionsGulf of Mexico Shelf acquisitionOn June 9,2010,Apache completed the acqu
154、isition of oil and gas assetsin the Gulf of Mexico shelf from Devon Energy Corporation for$1.05 billion.Permian acquisitionOn August 10,2010,we completed the acquisition of BP plcs(BP)oil and gasoperations,acreage,and infrastructure in the Permian Basin for$2.5 billion,net of preferential rights to
155、purchase.2Canadian acquisitionOn October 8,2010,we completed the acquisition of substantially all of BPsupstream natural gas business in western Alberta and British Columbia for$3.25 billion.Egyptian acquisitionOn November 4,2010,we completed the acquisition of BPs assets in EgyptsWestern Desert for
156、$650 million.Mariner mergerOn November 10,2010,Apache completed the acquisition of Mariner Energy,Inc.(Mariner)for stock and cash consideration totaling$2.7 billion.We also assumed approximately$1.7 billion ofMariners debt with the merger.For a more in-depth discussion of our growth strategy,2012 re
157、sults,and the Companys capital resourcesand liquidity,please see Part II,Item 7Managements Discussion and Analysis of Financial Condition andResults of Operations of this Form 10-K.Geographic Area OverviewsWe currently have exploration and production interests in six countries:the U.S.,Canada,Egypt,
158、Australia,the U.K.North Sea,and Argentina.Apache also pursues exploration interests in other countries that may overtime result in reportable discoveries and development opportunities.The following table sets out a brief comparative summary of certain key 2012 data for each of our operatingareas.Add
159、itional data and discussion is provided in Part II,Item 7 of this Form 10-K.2012ProductionPercentageof Total2012Production2012ProductionRevenue12/31/12EstimatedProvedReservesPercentageof TotalEstimatedProvedReserves2012GrossWellsDrilled2012GrossProductiveWellsDrilled(In MMboe)(In millions)(In MMboe)
160、United States.113.540%$6,2261,42450%1,0521,035Canada.44.7161,32254119169145Total North America.158.2567,5481,965691,2211,180Egypt.58.1204,55427310198174Australia.23.681,57534212158North Sea.27.4102,75117062116Argentina.17.7651910233030Other International.1Total International.126.8449,39988731265228T
161、otal.285.0100%$16,9472,852100%1,4861,408North AmericaApaches North American asset base primarily comprises operations in the central U.S.,the Permian Basin,the Gulf Coast onshore and offshore areas of the U.S.,and operations in Western Canada.In 2012,ourNorth America assets contributed 56 percent of
162、 our production and 45 percent of our oil and gas productionrevenues.At year-end 2012,69 percent of our estimated proved reserves were located in North America.United StatesOverviewWe have 12.3 million gross acres across the U.S.,approximately 60 percent of which isundeveloped.After expanding our po
163、rtfolio over the last three years,we now hold leading positions in manyattractive basins and plays within the United States.To focus our development efforts in the U.S.,we havedivided our assets into five distinct regions:Central,Permian,Gulf of Mexico Shelf,Gulf of Mexico Deepwater,and Gulf Coast O
164、nshore.We also have leasehold acreage holdings in Alaska and other states where we are3pursuing exploration opportunities.Our holdings in the U.S.provide a balance of hydrocarbon mix and reservelife and an opportunity for continued exploration.In 2012,54 percent of our U.S.production and 63 percent
165、ofour U.S.year-end estimated proved reserves were oil and liquids.In addition,the reserve life of our U.S.regionsranged from 6 to 20 years with the Gulf of Mexico offshore regions shorter-lived reserves balancing longer-lived reserves in the Central and Permian regions.In 2012,40 percent of Apaches
166、equivalent production and50 percent of Apaches total year-end estimated proved reserves were in the U.S.Central RegionThe Central region includes more than 3,500 producing wells primarily in westernOklahoma and the Texas panhandle and controls nearly 1.9 million gross acres.The region is Apaches fir
167、st corearea dating back over half a century and has historically grown through low-risk,highly predictable natural gasexploitation.Over the last three years,however,a transformation from vertical to horizontal drilling andcontinued price disparity between crude oil and natural gas have evolved the r
168、egion from one targeting naturalgas to one now targeting oil and liquids-rich gas plays.This focus resulted in liquids production growth of over115 percent during 2011.Oil and liquids production further expanded during 2012,with oil production more thandoubling and NGL production almost tripling com
169、pared to the prior year.Total region production was up37 percent in 2012.The Central region contributed 8 percent of Apaches 2012 equivalent production and9 percent of total year-end proved reserves.The primary driver of the regions growth was an active exploration and development program where wedr
170、illed or participated in drilling 192 wells during 2012,99 percent of which were completed as producers.Asignificant focus of our drilling program has been in the Anadarko basins Granite Wash play.The Granite Washconsists of a series of thick,multi-layered formations of low-permeability and liquids-
171、rich sandstones.TheCompanys significant acreage position in the play has generated an active drilling plan for the next several yearsacross numerous formations,notably the Tonkawa,Marmaton,Cottage Grove,and Cleveland.We have also been drilling Canyon Wash wells on approximately 92,000 net acres in t
172、he Whittenburg basin.During the year,we drilled and completed seven successful wells in the Canyon Wash,which averaged 30-daygross rates of approximately 675 b/d and 500 Mcf/d.These tests are an encouraging validation of this play,giventhe results are from vertically drilled wells.Our drilling momen
173、tum in the Central region was further bolstered in April when the Company completedthe acquisition of Cordillera,a privately held company with approximately 312,000 net acres in the heart of theAnadarko basin,nearly 18 Mboe/d of production,and estimated proved reserves of 70 MMboe.The acquisitiondou
174、bled Apaches acreage in the Granite Wash area and added a robust drilling inventory that was immediatelyintegrated into our existing program.The region operated an average of 18 drilling rigs during 2012 and,with a growing portfolio of drillingopportunities,plans to run an average of 29 rigs during
175、2013.We expect to invest approximately$1.4 billion in2013 for drilling,recompletions,equipment upgrades,and production enhancement projects.The region will alsoinvest in facility and transportation projects to increase takeaway capacity.Permian RegionOur Permian region controls over 3.5 million gros
176、s acres with exposure across everymajor play in the Permian Basin.The regions property and acreage base has increased substantially over the lastthree years through an active acquisition effort.Apache is now one of the largest operators in the Permian Basin,operating more than 12,000 wells in 152 fi
177、elds,including 47 waterfloods and 7 active CO2 floods,including theRoberts Unit,which initiated CO2 injection in January 2013.In 2012,liquids production in the region was up25 percent,contributing to a total sequential production increase of over 18 percent as a result of an activedrilling program t
178、hat is continuing to ramp up.We averaged running 32 rigs during the year,drilling orparticipating in 781 wells,and plan to run 34 rigs in 2013.The Permian regions year-end 2012 estimated provedreserves were 800 MMboe and represented 28 percent of Apaches total proved reserves.A key focus area of our
179、 activity during the year continued to be the multi-zone development of theDeadwood area.Deadwood is the most active of our plays in the Midland basin,where we ran an average of416 rigs and drilled 317 wells.Specifically,the region is primarily drilling vertical wells targeting the Wolfwoodand the F
180、usselman zones.With additional 3-D seismic data recently acquired,our ability to target other prolificaccumulations and new drilling locations has been enhanced.The region is also building a large inventory of horizontal drilling opportunities based on success achievedover 2012,having drilled or par
181、ticipated in drilling 104 horizontal wells during the period.Two horizontal playsin the Midland Basin,the Wolfcamp and Cline shales,have been drilled and commercialized with multi-rigdevelopment programs moving forward.Also in the Midland Basin,we recently drilled and completed oil-producing wells i
182、n the Barnett and Deadwood shales focusing on the future potential across our large acreageposition.New horizontal plays in the Mississippian Lime and Clearfork shales are planned for 2013.We recentlycommenced horizontal well programs in the Yeso area of New Mexico as well as in the Bone Spring andW
183、olfcamp plays in Texas.We also continue to achieve positive results in the Central basin with horizontalredevelopment of historically conventional fields and reservoirs.We expect to conduct greater horizontal drillinginto 2013,when we project that nearly half of our rigs will be drilling horizontal
184、wells by year-end.Our active drilling program has resulted in production growth for the past eight sequential quarters,rising37 percent over the past two years.Given a current inventory of over 34,000 locations,the region has a deepportfolio of drilling opportunities for multiple years.For 2013,the
185、Permian region plans to invest approximately$2.4 billion in drilling,recompletion projects,equipment upgrades,expansion of existing facilities andequipment,and leasing activities.Gulf Coast RegionsOur Gulf Coast assets are primarily located in and along the Gulf of Mexico,in theareas onshore and off
186、shore Texas,Louisiana,Alabama,and Mississippi.The area is divided into three regions,which include the Gulf of Mexico Shelf,Gulf of Mexico Deepwater,and Gulf Coast Onshore.In water depths less than 500 feet,which constitutes most of our Gulf of Mexico Shelf region,Apache iscurrently the largest prod
187、ucer and has been the largest offshore held-by-production acreage owner since 2004,holding approximately three million gross acres.The region contributed 12 percent of our worldwide productionand revenue during 2012.With prolific wells,strong cash flows,and a strategic position near the petrochemica
188、l-industrial complex on the U.S.Gulf Coast,the region has consistently generated high rates of return.During2012 the region drilled or participated in 36 wells with an 80-percent success rate,consistent with activity levelsof the prior two years.In June 2012,the region also participated in the feder
189、al lease sale where we were awarded60 blocks,opening up additional exploration and development opportunities.In water depths greater than 500 feet,the Gulf of Mexico Deepwater region is a relatively underexploredand oil prone area that provides exposure to significant reserve and production potentia
190、l.Apaches strategicpresence in the area was gained through the 2010 Mariner merger and was extended through our participation inthe June 2012 federal lease sale where we were awarded 28 new leases.The Company now owns approximately900,000 gross acres across 166 blocks as of the end of 2012.The Deepw
191、ater region contributed only 2 percent ofApaches worldwide production in 2012;however,there are several large projects and developments underwaythat could spur significant growth.The non-operated Lucius project,where Apache holds an 11.7-percentworking interest,is currently under development with fi
192、rst production projected for 2014.In addition,the large-scale non-operated Heidelberg project continues to move forward.Apache has a 12.5-percent working interest inthis development with first production projected for 2016.The region also continues to increase its explorationactivity.After drilling
193、two wells in 2011,we drilled five wells in 2012 with a 60-percent success rate.Sevenwells are planned for drilling in the areas in which we hold an interest during 2013.Apaches Gulf Coast Onshore region includes mature onshore and near-shore basins of Texas,Louisiana,and Mississippi,where it has a s
194、ignificant acreage position of approximately 1.4 million gross acres,including330,000 mineral fee acres.With advancements in modern seismic imaging,horizontal drilling and completiontechnologies,additional opportunities continue to evolve.During the year,the region focused on drilling shallowand mod
195、erate-depth targets,increasing acreage holdings,and expanding regional 3-D seismic databases.In5addition,the region continued evaluating several unconventional resource plays and deeper exploitationopportunities.The region drilled or participated in drilling 35 wells during 2012 and plans to drill o
196、r participatein approximately 39 wells in 2013.In 2013,Apache plans to invest approximately$700 million,$400 million,and$250 million in the Gulf ofMexico Shelf,Gulf of Mexico Deepwater,and Gulf Coast Onshore regions,respectively.The capital will bespent on drilling,recompletion and development proje
197、cts,equipment upgrades,production enhancement projects,and seismic and lease activities.The Company spent$435 million on abandonment activities in 2012 over theentire Gulf Coast area and expects similar activity levels in 2013.U.S.MarketingIn general,most of our U.S.gas is sold at either monthly or
198、daily market prices.Ournatural gas is sold primarily to local distribution companies(LDCs),utilities,end-users,and integrated major oilcompanies.We maintain a diverse customer portfolio,which is intended to reduce the concentration of creditrisk.Apache primarily markets its U.S.crude oil to integrat
199、ed major oil companies,marketing and transportationcompanies,and refiners.Our objective is to maximize the value of crude oil sold by identifying the best marketsand most economical transportation routes available to move the product.Sales contracts are generally 30-dayevergreen contracts that renew
200、 automatically until canceled by either party.These contracts provide for sales thatare priced daily at prevailing market prices.Apaches NGL production is sold under contracts with prices based on market indices,less the costs fortransportation and fractionation,or on a weighted-average sales price
201、received by the purchaser.CanadaOverviewSince entering the Canadian market in 1995,Apache has continued to increase its presence inthe region and now holds approximately seven million gross acres across the provinces of British Columbia,Alberta,and Saskatchewan.The regions large acreage position pro
202、vides portfolio diversification as well assignificant drilling opportunity.Canada represented approximately 19 percent of Apaches worldwide provedreserves at year-end 2012 and approximately 16 percent of 2012 worldwide production.In 2012,Apache drilled or participated in drilling 169 wells in Canada
203、,with a continued focus on increasingoil and liquids-rich gas production.Reservoir modeling and state-of-the-art horizontal drilling technologyadvanced several oil plays in the Viking,Glauconite,Dunvegan,and Sparky formations,and success with multi-stage fracture completions continues to increase th
204、e scope of oil and liquids-rich gas drilling opportunities.Future natural gas drilling activity will be driven by market prices and the Kitimat LNG project.InDecember 2012,Apache announced an agreement with Chevron Canada to build and operate the Kitimat LNGproject and develop shale gas resources at
205、 the Liard and Horn River basins in British Columbia.Chevron Canadaand Apache Canada will each hold a 50-percent interest in the Kitimat LNG plant,the Pacific Trail Pipeline,andapproximately 644,000 gross undeveloped acres in the Horn River and Liard basins.Chevron Canada willoperate the LNG plant a
206、nd pipeline,and Apache Canada will operate Horn River and Liard.The Kitimat planthas received all significant environmental approvals and a 20-year export license from the Canadian federalgovernment.Although the project has not reached a final investment decision,we believe Chevrons experiencein dev
207、eloping LNG projects and marketing expertise will assist in moving the development forward.Thetransaction was completed on February 8,2013.In 2013,the region plans to invest approximately$680 million in drilling and development projects,equipment upgrades,production enhancement projects,seismic acqu
208、isition,and Kitimat project development.Drilling in 2013 will continue to focus on conventional oil and liquids-rich gas plays.6MarketingOur Canadian natural gas marketing activities focus on sales to utilities,end-users,integratedmajor oil companies,supply aggregators,and marketers.We maintain a di
209、verse client portfolio,which isintended to reduce the concentration of credit risk in our portfolio.To diversify our market exposure,wetransport natural gas via firm transportation contracts to export border points for delivery into Washington,California,and the Chicago area.We sell the majority of
210、our Canadian gas on a monthly basis at either first-of-the-month or daily AECO index prices.Canadian crude oil production is sold to integrated major companies,refiners,and marketing companiesbased on a WTI price,adjusted for quality,transportation,and a market-reflective negotiated differential.Wem
211、aximize the value of our condensate and heavier crudes by determining whether to blend the condensate intoour own crude production or sell it in the market as a segregated product.The crude is transported on pipeline ortruck within Western Canada to the market hubs in Alberta and Manitoba where it i
212、s sold,allowing for a morediversified group of purchasers and a higher netback price.The regions NGL production is sold under contracts with prices based on market indices,less the costs fortransportation and fractionation,or on a weighted-average sales price received by the purchaser.InternationalA
213、paches international assets are located in Egypt,Australia,offshore the U.K.in the North Sea,andArgentina.In 2012,international assets contributed 44 percent of our production and 55 percent of our oil andgas revenues.At year-end 2012,31 percent of our estimated proved reserves were located outside
214、NorthAmerica.EgyptOverviewOur activity in Egypt began in 1994 with our first Qarun discovery well.Today we control9.7 million gross acres,making Apache the largest acreage holder in Egypts Western Desert.Only 18 percent ofour gross acreage in Egypt has been developed,with gross production of 213 Mb/
215、d and 900 MMcf/d in 2012,or100 Mb/d and 354 MMcf/d net to Apache.The remaining 82 percent of our acreage is undeveloped,providing uswith considerable exploration and development opportunities for the future.In 2012,the region contributed27 percent of Apaches worldwide production revenue,20 percent o
216、f our worldwide production,and 10 percentof our year-end 2012 estimated proved reserves.Our estimated proved reserves in Egypt are reported under theeconomic interest method and exclude the host country share reserves.Our operations in Egypt are conducted pursuant to production-sharing agreements in
217、 23 separateconcessions,under which the contractor partner pays all operating and capital expenditure costs for explorationand development.Development leases within concessions generally have a 25-year life,with extensions possiblefor additional commercial discoveries or on a negotiated basis,and cu
218、rrently have expiration dates ranging fromfive to 25 years.A percentage of the production on development leases,usually up to 40 percent,is available tothe contractor partners to recover operating and capital expenditure costs,with the balance generally allocatedbetween the contractor partners and E
219、gyptian General Petroleum Corporation(EGPC)on a contractually definedbasis.Historically,growth in Egypt has been driven by an ongoing drilling program,and we are one of the mostactive drillers in the region.Throughout 2012,we averaged running 25 rigs and drilled 188 development andinjection wells an
220、d 51 exploration wells.Approximately 55 percent of our exploration wells were successful,further expanding our presence in the westernmost concessions and unlocking additional opportunities in existingplays.A key component of the regions success has been our ability to acquire and evaluate 3-D seism
221、ic surveysthat enable the regions technical teams to consistently high-grade existing prospects and identify new targetsacross multiple pay horizons in the Cretaceous,Jurassic,and deeper Paleozoic reservoirs.7Heading into 2013,the region will continue an active drilling program and plans to invest a
222、pproximately$1.1 billion for drilling,recompletion projects,development projects,and seismic acquisition.There are alsoseveral key infrastructure projects underway that will focus on maintaining gas deliverability and bringingadditional liquids to market.MarketingOur gas production is sold to EGPC p
223、rimarily under an industry-pricing formula,a sliding scalebased on Dated Brent crude oil with a minimum of$1.50 per MMBtu and a maximum of$2.65 per MMBtu,plusan upward adjustment for liquids content.Apache previously agreed to accept the industry-pricing formula on amajority of gas sold but retained
224、 the previous gas-price formula(without an oil price cap)until the end of 2012for up to 100 MMcf/d gross.The region averaged$3.90 per Mcf in 2012.Oil from the Khalda Concession,the Qarun Concession,and other nearby Western Desert blocks is sold tothird parties in the Mediterranean market or to EGPC
225、when called upon to supply domestic demand.Oil sales areexported from or sold at one of two terminals on the northern coast of Egypt.Oil production that is presently soldto EGPC is sold on a spot basis priced at Brent with a monthly EGPC official differential applied.Egypt political unrestIn Februar
226、y 2011,former Egyptian president Hosni Mubarak stepped down,and theEgyptian Supreme Council of the Armed Forces took power,announcing that it would remain in power until thepresidential and parliamentary elections could be held.In June 2012,Mohamed Morsi of the MuslimBrotherhoods Freedom and Justice
227、 Party was elected as Egypts new president.In December 2012 the people ofEgypt ratified a new constitution.Under the new constitution,the government must hold elections for the lowerhouse of parliament within 60 days.Apaches operations,located in remote locations in the Western Desert,havenot experi
228、enced production interruptions,and we have continued to receive development lease approvals for ourdrilling program.However,a deterioration in the political,economic,and social conditions or other relevantpolicies of the Egyptian government,such as changes in laws or regulations,export restrictions,
229、expropriation ofour assets or resource nationalization,and/or forced renegotiation or modification of our existing contracts withEGPC could materially and adversely affect our business,financial condition,and results of operations.Apache purchases multi-year political risk insurance from the Oversea
230、s Private Investment Corporation(OPIC)and other highly rated international insurers covering a portion of its investments in Egypt.In theaggregate,these insurance policies,subject to the policy terms and conditions,provide approximately$1 billionof coverage to Apache for losses arising from confisca
231、tion,nationalization,and expropriation risks,with a$263 million sub-limit for currency inconvertibility.In addition,the Company has a separate policy with OPIC,which provides$300 million of coverage forlosses arising from(1)non-payment by EGPC of arbitral awards covering amounts owed Apache on past
232、dueinvoices and(2)expropriation of exportable petroleum in the event that actions taken by the government ofEgypt prevent Apache from exporting our share of production.In October 2012,the Multilateral InvestmentGuarantee Agency(MIGA),a member of the World Bank Group,announced that it was providing$1
233、50 millionin reinsurance to OPIC for the remainder of the policy term.This provision of long-term reinsurance to OPICwill allow Apache to maintain the$300 million of insurance coverage through 2024.AustraliaOverviewApaches holdings in Australia are focused offshore Western Australia in the Carnarvon
234、,Exmouth,and Browse basins.We have operated in the Carnarvon basin since acquiring the gas processingfacilities on Varanus Island and adjacent producing properties in 1993.Production operations are located in theCarnarvon and Exmouth basins.In total,we control approximately 7.9 million gross acres o
235、ffshore WesternAustralia through 30 exploration permits,17 production licenses,and 13 retention leases.Approximately90 percent of our acreage is undeveloped,and the region continues to actively pursue additional acreageopportunities.8During 2012,the region had net production of 29 Mb/d of oil and 21
236、4 MMcf/d of natural gas,contributing9 percent of Apaches worldwide production revenue,8 percent of worldwide production and 12 percent of year-end estimated proved reserves.Production compared to the prior year was 7 percent lower primarily as a result ofnatural decline in the Pyrenees and Van Gogh
237、oil fields.Offsetting production declines was a full year ofproduction from the Reindeer field.This gas is processed through the Devil Creek Gas Plant,which came onlinein December 2011.This plant is Western Australias third domestic natural gas processing hub and the first newhub to be constructed i
238、n more than 15 years.Gas from the development has been sold to a number of customersin Western Australias growing mining and minerals processing sectors at prices significantly higher than prioryear realizations.The region is a key component of Apaches exploration program.During 2012,we participated
239、 in drilling15 offshore wells,of which 10 were exploration or appraisal wells.This compares to nine wells drilled in 2011.Over the past decade,the regions exploration activity has established a significant pipeline of projects that areexpected to contribute to production growth as they are brought o
240、nstream in the coming years.First production is projected in 2013 from four completed gas wells in the Macedon gas field.Gas will bedelivered via a 60-mile pipeline to a 200 MMcf/d gas plant being built at Ashburton North in Western Australia.Apache has successfully marketed nearly all of its proved
241、 reserves in the Macedon field under long-termcontracts at prices significantly higher than current realizations.We have a 29-percent non-operating workinginterest in the field and gas plant.Development of the Coniston oil field project,which lies just north of the Van Gogh field,continued towardpro
242、jected first production in 2014.The field will be produced via subsea completions tied back to the FloatingProduction Storage and Offloading Vessel(FPSO)at Van Gogh.To more effectively control the Van Gogh andConiston field operations,development,and maintenance efforts,this FPSO(the Ningaloo Vision
243、)waspurchased from the lessor in January 2012.To accommodate production from Coniston,the FPSO is scheduledto go offline to the shipyard in early 2014 to complete required modifications.The region will also continue development of the offshore Balnaves field,an oil accumulation located nearthe Brune
244、llo gas field offshore Western Australia.The project is expected to deliver initial gross production of30 Mb/d in 2014 utilizing a leased FPSO vessel.Apache has a 65-percent working interest in the project.Further advances were made on the regions largest development effort,which is the Chevron-oper
245、atedWheatstone LNG project(Wheatstone)in Western Australia.The first phase of the Wheatstone project willcomprise two LNG processing trains with a combined capacity of approximately 8.9 million metric tons perannum(mtpa),a domestic gas plant,and associated infrastructure.Apache has a 13-percent inte
246、rest in the projectand expects to invest approximately$4 billion over five years for the field and LNG facility development.Apache will supply gas to Wheatstone from its operated Julimar and Brunello complex.The 65-percent interestJulimar development project is expected to generate average net sales
247、 to Apache of approximately 140 MMcf/dof gas(equivalent to 1.07 million mtpa of LNG)at prices pegged to world oil markets,22 MMcf/d of sales gasinto the domestic market,and 3,250 barrels of condensate per day.First production is projected for the end of2016.These development projects require signifi
248、cant capital investments above those for traditional drillingprograms.During 2013,the region plans to invest approximately$1.9 billion for drilling,recompletion projects,development projects,equipment upgrades,production enhancement projects,and seismic acquisition.Approximately$1.5 billion of our 2
249、013 capital will be invested in long-lead development projects.MarketingWestern Australia has historically had a local market for natural gas with a limited number ofbuyers and sellers resulting in sales under mostly long-term,fixed-price contracts,many of which containperiodic price revision clause
250、s based on either the Australian consumer price index or a commodity linkage.Asof December 31,2012,Apache had 21 active gas contracts in Australia with expiration dates ranging from9July 2014 to December 2026.Recent increases in demand and higher development costs have increased theprices required f
251、rom the local market in order to support the development of new supplies.As a result,marketprices negotiated on recent contracts are substantially higher than historical levels.We directly market all of our Australian crude oil production into Australian domestic and internationalmarkets at prices g
252、enerally indexed to Dated Brent benchmark crude oil prices plus premiums,which typicallyresult in sales well above crude sold at West Texas Intermediate(WTI)-based prices.During 2011,advances were made on Wheatstone,with binding Sales and Purchase Agreements signed bytwo Asian customers for the deli
253、very of approximately 60 percent of Apaches net LNG offtake.In 2012,furtheradvances were made on the Wheatstone project with the signing of two non-binding Heads of Agreements,whichwill take the total committed delivery volumes to over 80 percent once the final binding Sales and PurchaseAgreements a
254、re signed.These binding Sales and Purchase Agreements are expected to be finalized and signed in2013.North SeaOverviewApache entered the North Sea in 2003 after acquiring an approximate 97-percent workinginterest in the Forties field(Forties).Since acquiring Forties,Apache has actively invested in t
255、he region,havingproduced and sold oil volumes in excess of the proved reserves initially recorded.This success spurred last yearsMobil North Sea Limited(Mobil North Sea)acquisition,which provided the region with additional explorationand development opportunities across numerous fields,including ope
256、rated interests in the Beryl,Nevis,NevisSouth,Skene,and Buckland fields and non-operated interests in the Maclure,Scott,and Telford fields.During2012,we also announced that the U.K.Department of Energy&Climate Change awarded the region 11 newoperated licenses and 1 non-operated license,which togethe
257、r added approximately 613,000 gross acres to theregions portfolio.Included in these licenses is all of the available acreage adjacent to the Beryl field plustwo key licenses near the Forties field.In 2012,the North Sea region produced 64 Mb/d of oil and 57 MMcf/d of natural gas,contributing16 percen
258、t of Apaches worldwide production revenue,10 percent of worldwide production and 6 percent ofyear-end estimated proved reserves.The regions production was 36 percent higher compared to the prior year onproduction from the recently acquired Beryl assets and an active drilling program in both the Fort
259、ies and Berylfields.Drilling in the Forties field continued to benefit from extensive 4-D seismic interpretations obtained overthe last two years and has targeted many areas of bypassed oil in the mature reservoir.A 3-D seismic survey ofthe Beryl field commenced in early August and,when completed,wi
260、ll further refine our drilling plans for theseacquired assets.In 2012,21 wells were drilled in the North Sea,of which 16 were productive.Two of the highestproducing wells were the Beryl B72 well,which commenced production in May at a rate of 11.6 Mb/d and13.1 MMcf/d,and the Beryl B73 well,which was
261、completed in September with an initial rate of 8.2 Mb/d and5.9 MMcf/d.Apache has a 55-percent net interest in the Beryl field as of year-end.The region also made notable progress in several key development projects during the year.In April,production from the first Bacchus field well commenced at a
262、peak rate of 6 Mb/d;in July,a second horizontalwell was brought online at a peak rate of 9 Mb/d.Combined production from the two wells has been steady at10 Mb/d since July.Apaches net interest is 50 percent.In September,the jacket for the Forties Alpha SatellitePlatform was installed,with a topside
263、and bridge scheduled to be delivered during the second quarter of 2013.This platform has been constructed to continue to exploit new opportunities at Forties and sits adjacent to themain Alpha platform.It will provide an additional 18 drilling slots beginning in the third quarter of 2013 alongwith p
264、ower generation,fluid separation,gas lift compression,and oil export pumping.In 2013,the region plans to invest approximately$900 million on a diverse set of capital projects.Theregion will continue to refine drilling programs associated with properties acquired in the Mobil North Seaacquisition and
265、 integrate the additional opportunities gained over the last year.10MarketingWe have traditionally sold our North Sea crude oil under both term contracts and spot cargoes.The term sales are composed of a market-based index price plus a premium,which reflects the higher marketvalue for term arrangeme
266、nts.The prices received for spot cargoes are market driven and can trade at a premiumor discount to the market-based index.Natural gas from the Beryl field is processed through the SAGE gas plant operated by Apache.The gas issold to a third party at the St.Fergus entry point of the national grid on
267、a National Balancing Point index pricebasis.The condensate mix from the SAGE plant is processed further downstream.The split streams of propaneand butane are sold on a monthly entitlement basis,and condensate is sold on a spot basis at the Braefoot Bayterminal using index pricing less transportation
268、.ArgentinaOverviewWe have had a continuous presence in Argentina since 2001 and have grown our holdings in theregion through an active drilling program and targeted acquisitions.The region currently has active operations inthe provinces of Neuqun,Rio Negro,and Tierra del Fuego.We have interests in 3
269、2 concessions,explorationpermits,and other interests totaling 4.4 million gross acres in four of the main Argentine hydrocarbon basins:Neuqun,Austral,Cuyo,and Noroeste.Our concessions have varying expiration dates ranging from two years toover 15 years remaining,subject to potential extensions.Apach
270、e is currently in the process of extending ourconcessions in the Tierra del Fuego and Rio Negro Provinces,which are scheduled to expire between 2015 and2017.Future investment by Apache in the Tierra del Fuego and Rio Negro Provinces will be significantlyinfluenced by the ability to extend the presen
271、t concessions.In 2012,Argentina produced 6 percent of our worldwide production and held 4 percent of our estimatedproved reserves at year-end.We continue to focus our exploration and development activities in the Neuqunbasin.During the year,the region drilled or participated in drilling 28 gross wel
272、ls pursuant to a developmentdrilling program that achieved a 100-percent success rate by focusing on unconventional Gas Plus gas andshallow oil plays.Our 2012 exploration program included drilling two gross horizontal wells targeting the VacaMuerta shale formation,where we hold 1.3 million net acres
273、,of which 586,000 net acres are in the oil play.In2013,the region plans to finish testing and evaluating those wells in preparation for future drilling programs.During 2013,the region plans to invest approximately$200 million for drilling,recompletion projects,development projects,equipment upgrades
274、,production enhancement projects,and seismic acquisition.MarketingNatural GasApache sells its natural gas in Argentina through three pricing structures:Gas Plus program:This program was instituted by the Argentine government in 2008 to encouragenew gas supplies through the development of conventiona
275、l and unconventional(tight sands)reserves.Under this program,Apache is allowed to sell gas from qualifying projects at prices that are above theregulated rates.During 2012,the average Gas Plus volume sold by Apache was 73.2 MMcf/d at anaverage price of$4.89 per Mcf.For 2013,Apache has signed contrac
276、ts for total gross volumes to besold under Gas Plus contracts of 80 MMcf/d at$5.01.Government-regulated pricing:The volumes we are required to sell at regulated prices are set by theArgentine government and vary based on seasonal factors and industry category.During 2012,werealized an average price
277、of$0.84 per Mcf on government-regulated sales.Unregulated market:The majority of our remaining volumes are sold into the unregulated market.In2012,realizations on sales in the unregulated market averaged$3.52 per Mcf.The weighted average of government-regulated and unregulated sales for 2012 was$2.0
278、3 per Mcf.11Crude OilOur crude oil is subject to an export tax,which effectively limits the prices buyers are willing topay for domestic sales.Domestic oil prices are currently based on$42 per barrel,plus quality adjustments andlocal premiums,and producers realize a gradual increase or decrease as m
279、arket prices deviate from the baseprice.Other ExplorationNew VenturesApaches global New Ventures team provides exposure to new growth opportunities by looking outside ofthe Companys traditional core areas and targeting higher-risk,high-reward exploration opportunities located infrontier basins as we
280、ll as new plays in more mature basins.The New Ventures group was established in 2010with a worldwide program focused on deepwater exploration,where many of the worlds large oil discoverieshave occurred over the last decade,unconventional resources in North America and elsewhere,andunderexplored basi
281、ns that can be developed through application of new technologies.Apaches 2012 activities included drilling in offshore Kenya;participating in the Suriname bid round andwinning offshore block 53;establishing a presence in several known U.S.resource plays;and acquiring seismicand spudding our first we
282、ll on our acreage in the Cook Inlet of Alaska.Apaches first exploration well in Kenya,the Mbawa 1,was drilled in the third quarter of 2012,encountering approximately 170 feet of natural gas pay inthree zones.We have a 50-percent interest in the block and continue to analyze the well data to determin
283、e futureexploration activities.In Alaska,the New Ventures team has acquired approximately 700,000 net acres over thelast two years in the Cook Inlet basin and has commenced a robust seismic study over the area to facilitate futuredrilling activity.Apache has also leased nearly 500,000 net acres in t
284、he Mississippian Lime play in Kansas andNebraska and 300,000 net acres in Montanas Williston basin.We have commenced drilling activity in both ofthese plays.During 2013,we plan to invest approximately$100 million to further these projects and continue pursuingadditional exploration opportunities.Maj
285、or CustomersIn 2012,2011,and 2010 purchases by Royal Dutch Shell plc and its subsidiaries accounted for 20 percent,11 percent,and 15 percent,respectively,of the Companys worldwide oil and gas production revenues.In 2011,purchases by the Vitol Group accounted for 13 percent of the Companys worldwide
286、oil and gas productionrevenues.Drilling StatisticsWorldwide in 2012 we participated in drilling 1,486 gross wells,with 1,408(95 percent)completed asproducers.Historically,our drilling activities in the U.S.have generally concentrated on exploitation andextension of existing producing fields rather t
287、han exploration.As a general matter,our operations outside of theU.S.focus on a mix of exploration and development wells.In addition to our completed wells,at year-endseveral wells had not yet reached completion:70 in the U.S.(55.73 net);11 in Canada(9.00 net);26 in Egypt(26.00 net);2 in Australia(1
288、.65 net);and 4 in Argentina(3.75 net).12The following table shows the results of the oil and gas wells drilled and completed for each of the last threefiscal years:Net ExploratoryNet DevelopmentTotal Net WellsProductiveDryTotalProductiveDryTotalProductiveDryTotal2012United States.9.53.513.0746.09.67
289、55.6755.513.1768.6Canada.5.07.512.5110.314.0124.3115.321.5136.8Egypt.28.022.550.5144.41.0145.4172.423.5195.9Australia.1.92.74.61.30.72.03.23.46.6North Sea.1.30.01.311.73.915.613.03.916.9Argentina.2.00.02.023.00.023.025.00.025.0Other International.0.00.50.50.00.00.00.00.50.5Total.47.736.784.41,036.72
290、9.21,065.91,084.465.91,150.32011United States.12.45.017.4522.017.0539.0534.422.0556.4Canada.4.05.09.077.25.082.281.210.091.2Egypt.28.219.848.0112.66.0118.6140.825.8166.6Australia.1.02.33.31.00.01.02.02.34.3North Sea.0.00.30.310.71.912.610.72.212.9Argentina.4.01.05.029.40.329.733.41.334.7Total.49.633
291、.483.0752.930.2783.1802.563.6866.12010United States.3.72.25.9309.212.7321.9312.914.9327.8Canada.6.51.58.0122.35.7128.0128.87.2136.0Egypt.19.418.537.9144.85.5150.3164.224.0188.2Australia.5.53.48.94.51.35.810.04.714.7North Sea.1.01.22.210.75.816.511.77.018.7Argentina.1.82.74.543.30.343.645.13.048.1Tot
292、al.37.929.567.4634.831.3666.1672.760.8733.5Productive Oil and Gas WellsThe number of productive oil and gas wells,operated and non-operated,in which we had an interest as ofDecember 31,2012,is set forth below:OilGasTotalGrossNetGrossNetGrossNetUnited States.13,7629,1925,3753,14919,13712,341Canada.2,
293、1959979,0657,74411,2608,741Egypt.97793779741,0561,011Australia.49251386233North Sea.151992312174111Argentina.474397417383891780Total.17,60811,64714,97211,37032,58023,017Gross natural gas and crude oil wells include 1,625 wells with multiple completions.13Production,Pricing,and Lease Operating Cost D
294、ataThe following table describes,for each of the last three fiscal years,oil,NGL,and gas production volumes,average lease operating expenses per boe(including transportation costs but excluding severance and othertaxes),and average sales prices for each of the countries where we have operations:Prod
295、uctionAverage LeaseOperatingCost per BoeAverage Sales PriceYear Ended December 31,Oil(MMbbls)NGLs(MMbbls)Gas(Bcf)Oil(Per bbl)NGLs(Per bbl)Gas(Per Mcf)2012United States.49.112.3312.6$12.83$94.98$32.19$3.74Canada.5.82.3219.913.8784.8934.633.42Egypt.36.5129.57.73110.923.90Australia.10.678.39.08115.224.
296、55North Sea.23.30.621.012.38107.9777.118.95Argentina.3.51.178.110.8575.8921.552.87Total.128.816.3839.411.49102.5333.453.802011United States.43.68.1315.6$11.80$95.51$48.42$4.91Canada.5.22.2230.913.8693.1945.724.47Egypt.37.9133.47.19109.924.66Australia.14.067.67.80111.222.69North Sea.19.90.811.61104.0
297、922.25Argentina.3.51.177.59.8368.0227.902.64Total.124.111.4825.810.62102.1945.954.372010United States.35.35.0266.8$11.40$76.13$41.45$5.28Canada.5.31.1144.513.4672.8336.614.48Egypt.36.2136.85.5679.453.62Australia.16.772.96.4177.322.24North Sea.20.80.99.2376.6618.64Argentina.3.61.267.57.9757.4727.081.
298、96Total.117.97.3689.49.2076.6938.584.15Gross and Net Undeveloped and Developed AcreageThe following table sets out our gross and net acreage position as of December 31,2012,in each countrywhere we have operations:Undeveloped AcreageDeveloped AcreageGross AcresNet AcresGross AcresNet AcresUnited Stat
299、es.7,447,4874,896,4424,873,8102,609,338Canada.2,659,3232,328,8424,278,2523,226,076Egypt.7,934,6905,142,1581,800,7201,693,216Australia.7,058,0383,854,352880,467534,665North Sea.563,129245,729159,96194,448Argentina.4,182,0673,106,969221,422188,795Total.29,844,73419,574,49212,214,6328,346,538As of Dece
300、mber 31,2012,we had 5,229,947,1,940,328,and 2,596,636 net acres scheduled to expire byDecember 31,2013,2014,and 2015,respectively,if production is not established or we take no other action toextend the terms.We strive to continue the terms of many of these licenses and concession areas throughopera
301、tional or administrative actions,but cannot assure that such extensions can be achieved on an economicbasis or otherwise on terms agreeable to both the Company and third-parties including governments.As of December 31,2012,37 percent of U.S.net undeveloped acreage and 47 percent of Canadianundevelop
302、ed acreage was held by production.14Estimated Proved Reserves and Future Net Cash FlowsProved oil and gas reserves are the estimated quantities of natural gas,crude oil,condensate,and NGLs thatgeological and engineering data demonstrate with reasonable certainty to be recoverable in future years fro
303、mknown reservoirs under existing conditions,operating conditions,and government regulations.Estimated proveddeveloped oil and gas reserves can be expected to be recovered through existing wells with existing equipmentand operating methods.The Company reports all estimated proved reserves held under
304、production-sharingarrangements utilizing the“economic interest”method,which excludes the host countrys share of reserves.Estimated reserves that can be produced economically through application of improved recovery techniquesare included in the“proved”classification when successful testing by a pilo
305、t project or the operation of an active,improved recovery program using reliable technology establishes the reasonable certainty for the engineeringanalysis on which the project or program is based.Economically producible means a resource that generatesrevenue that exceeds,or is reasonably expected
306、to exceed,the costs of the operation.Reasonable certainty meansa high degree of confidence that the quantities will be recovered.Reliable technology is a grouping of one ormore technologies(including computational methods)that has been field-tested and has been demonstrated toprovide reasonably cert
307、ain results with consistency and repeatability in the formation being evaluated or in ananalogous formation.In estimating its proved reserves,Apache uses several different traditional methods that canbe classified in three general categories:(1)performance-based methods;(2)volumetric-based methods;a
308、nd(3)analogy with similar properties.Apache will,at times,utilize additional technical analysis,such as computerreservoir models,petrophysical techniques,and proprietary 3-D seismic interpretation methods,to provideadditional support for more complex reservoirs.Information from this additional analy
309、sis is combined withtraditional methods outlined above to enhance the certainty of our reserve estimates.Proved undeveloped reserves include those reserves that are expected to be recovered from new wells onundrilled acreage,or from existing wells where a relatively major expenditure is required for
310、 recompletion.Undeveloped reserves may be classified as proved reserves on undrilled acreage directly offsetting developmentareas that are reasonably certain of production when drilled,or where reliable technology provides reasonablecertainty of economic producibility.Undrilled locations may be clas
311、sified as having undeveloped reserves only ifa development plan has been adopted indicating that they are scheduled to be drilled within five years,unlessspecific circumstances justify a longer time period.The following table shows proved oil,NGL,and gas reserves as of December 31,2012,based on aver
312、agecommodity prices in effect on the first day of each month in 2012,held flat for the life of the production,exceptwhere future oil and gas sales are covered by physical contract terms.This table shows reserves on a boe basis inwhich natural gas is converted to an equivalent barrel of oil based on
313、a 6:1 energy equivalent ratio.This ratio isnot reflective of the current price ratio between the two products.Oil(MMbbls)NGL(MMbbls)Gas(Bcf)Total(MMboe)Proved Developed:United States.4741552,3541,021Canada.80221,735391Egypt.107690222Australia.29596128North Sea.120293138Argentina.16536582Proved Undev
314、eloped:United States.20361832403Canada.7112403150Egypt.1720551Australia.351,074214North Sea.282032Argentina.319720TOTAL PROVED.1,1832588,4642,85215As of December 31,2012,Apache had total estimated proved reserves of 1,441 MMbbls of crude oil,condensate,and NGLs and 8.5 Tcf of natural gas.Combined,th
315、ese total estimated proved reserves are the energyequivalent of 2.9 billion barrels of oil or 17.1 Tcf of natural gas,of which oil represents 41 percent.As ofDecember 31,2012,the Companys proved developed reserves totaled 1,982 MMboe and estimated PUDreserves totaled 870 MMboe,or approximately 30 pe
316、rcent of worldwide total proved reserves.Apache haselected not to disclose probable or possible reserves in this filing.The Companys estimates of proved reserves,proved developed reserves and PUD reserves as ofDecember 31,2012,2011,and 2010,changes in estimated proved reserves during the last three
317、years,andestimates of future net cash flows from proved reserves are contained in Note 14Supplemental Oil and GasDisclosures in the Notes to Consolidated Financial Statements set forth in Part IV,Item 15 of this Form 10-K.Estimated future net cash flows as of December 31,2012 and 2011,were calculate
318、d using a discount rate of 10percent per annum,end of period costs,and an unweighted arithmetic average of commodity prices in effect onthe first day of each of the previous 12 months,held flat for the life of the production,except where prices aredefined by contractual arrangements.Proved Undevelop
319、ed ReservesThe Companys total estimated PUD reserves of 870 MMboe as of December 31,2012,decreased by128 MMboe from 998 MMboe of PUD reserves estimated at the end of 2011.Driven by the significant decline inNorth America natural gas prices,a portion of our PUD reserves fell below the threshold for e
320、conomicdevelopment and were removed from our proved reserves balance.The majority of these pricing revisions wereassociated with dry gas development projects in Canada.During the year,Apache converted 133 MMboe of PUDreserves to proved developed reserves through development drilling activity.In Nort
321、h America,we converted 98MMboe,with the remaining 35 MMboe in our international areas.We acquired 47 MMboe of PUD reservesduring the year.We added 158 MMboe of new PUD reserves through extensions and discoveries and hadnegative revisions of 200 MMboe associated with changes in product prices and rev
322、ised development plans.During the year,a total of approximately$3.4 billion was spent on projects associated with reserves thatwere carried as PUD reserves at the end of 2011.A portion of our costs incurred each year relate to developmentprojects that will be converted to proved developed reserves i
323、n future years.We spent$1.5 billion on PUDreserve development activity in North America and$1.9 billion in the international areas.Other than our Julimar/Brunello development project,which is tied to the construction schedule of the Wheatstone LNG project,withprojected first production in 2016,we ha
324、d no material amounts of PUD reserves that have remained undevelopedfor five years or more after they were initially disclosed as PUD reserves and no material amounts of PUDreserves which are scheduled to be developed beyond five years from December 31,2012.Preparation of Oil and Gas Reserve Informa
325、tionApache emphasizes that its reported reserves are reasonably certain estimates which,by their very nature,are subject to revision.These estimates are reviewed throughout the year and revised either upward ordownward,as warranted.Apaches proved reserves are estimated at the property level and comp
326、iled for reporting purposes by acentralized group of experienced reservoir engineers that is independent of the operating groups.These engineersinteract with engineering and geoscience personnel in each of Apaches operating areas and with accounting andmarketing employees to obtain the necessary dat
327、a for projecting future production,costs,net revenues,andultimate recoverable reserves.All relevant data is compiled in a computer database application,to which onlyauthorized personnel are given security access rights consistent with their assigned job function.Reserves arereviewed internally with
328、senior management and presented to Apaches Board of Directors in summary form ona quarterly basis.Annually,each property is reviewed in detail by our corporate and operating region engineersto ensure forecasts of operating expenses,netback prices,production trends,and development timing arereasonabl
329、e.16Apaches Executive Vice President of Corporate Reservoir Engineering is the person primarily responsiblefor overseeing the preparation of our internal reserve estimates and for coordinating any reserves auditsconducted by a third-party engineering firm.He has a Bachelor of Science degree in Petro
330、leum Engineering andover 30 years of industry experience with positions of increasing responsibility within Apaches corporatereservoir engineering department.The Executive Vice President of Corporate Reservoir Engineering reportsdirectly to our Chairman and Chief Executive Officer.The estimate of re
331、serves disclosed in this Annual Report on Form 10-K is prepared by the Companysinternal staff,and the Company is responsible for the adequacy and accuracy of those estimates.However,theCompany engages Ryder Scott Company,L.P.Petroleum Consultants(Ryder Scott)to review our processes andthe reasonable
332、ness of our estimates of proved hydrocarbon liquid and gas reserves.Apache selects the propertiesfor review by Ryder Scott based primarily on relative reserve value.We also consider other factors such asgeographic location,new wells drilled during the year and reserves volume.During 2012,the propert
333、ies selectedfor each country ranged from 77 to 99 percent of the total future net cash flows discounted at 10 percent.Theseproperties also accounted for over 86 percent of the reserves value of our international proved reserves and of thenew wells drilled in each country.In addition,all fields containing five percent or more of the Companys totalproved reserves volume were included in Ryder Scott
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