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Given its acreage holdings and recent seismic data acquisitions, the region’s deep portfolio of drilling inventory and opportunities allows us to focus efforts on the most economic wells and capital projects as the industry continues to adjust to current commodity price levels. Heading into 2016, we will continue to operate in a reduced capital spending program and will balance larger development programs with exploration activity in several new areas. MidContinent/Gulf Coast Region As part of our 2015 strategic efforts to reduce our operating cost structure, we streamlined our organization by closing our regional office in Tulsa and combining our MidContinent and Gulf Coast onshore regions. Apache’s MidContinent/Gulf Coast region holds 2.8 million gross acres and includes 3,402 producing wells primarily in western Oklahoma, the Texas Panhandle, and south Texas. Total region production in 2015 was 73 Mboe/d, comprising 13 percent of Apache’s worldwide production. The region’s year-end 2015 estimated proved reserves were 154 MMboe. In 2015, Apache drilled or participated in drilling 127 wells with a 99 percent success rate. The region focused on drilling activities in the Canyon Lime, Eagle Ford, Marmaton, and Woodford formations with consistently strong results. Apache is active in the Woodford-SCOOP play in Central Oklahoma targeting the Woodford formation, where we drilled or participated in drilling 33 wells. The region continues to work on optimizing fracture geometry and well spacing to reduce costs in this play. Apache’s prolific Canyon Lime and Woodford plays will again be a focus area for region drilling activity in 2016. Canada Region Apache entered the Canadian market in 1995 and currently holds nearly 3.6 million gross acres across the provinces of British Columbia, Alberta, and Saskatchewan. The region’s large acreage position presents significant drilling opportunities and portfolio diversification with exposure to oil, gas, and liquids rich fairways. Our Canadian region provided approximately 13 percent of Apache’s 2015 worldwide production and held 280 MMboe of estimated proved reserves at year-end. In 2015, Apache drilled or participated in drilling 38 wells in the region with a 100 percent success rate. Drilling operations continued in our established Swan Hills, Bluesky, and Glauconite plays, and we de-risked our Montney and Duvernay emerging growth plays. The results from the first seven-well pad in the Duvernay were encouraging. Moving to a pad development decreased costs by 40 percent from 2014. The pad commenced production during the fourth quarter, with average 30 day initial production rates of 1,632 boe/d per well. Our Montney drilling has been focused in the Karr-Simonette and Wapiti areas. The two initial wells in KarrSimonette exceeded expectations with peak oil rates of 450 and 630 boe/d. We have also successfully tested the lower Montney in the Wapiti area. The region’s development activity in 2016 will primarily be centered on the Duvernay and Montney programs. As part of our assessment and rationalization of the Company’s North American portfolio, in the second quarter of 2015 we divested our working interest in the Kitimat LNG development and approximately 333,000 of our net acres in the Horn River and Liard natural gas basins of British Columbia. North America Offshore Gulf of Mexico Region The Gulf of Mexico region comprises assets in the offshore waters of the Gulf of Mexico and onshore Louisiana. Apache’s offshore technical teams continue to focus on subsalt and other deeper exploration opportunities in water depths less than 1,000 feet, which have been relatively untested by the industry. In addition to the exploration and development of properties in shallower water, Apache continues to pursue joint venture and other monetization opportunities for its deepwater prospects, which offer exposure to significant reserve and production potential in underexplored and oil-prone areas in water depths greater than 1,000 feet. During 2015, Apache’s Gulf of Mexico region contributed 9.2 Mboe/d to the Company’s total production.


Apache 2015 Summary Annual Report  

Adapting to a changing environment

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