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The following table shows proved oil, NGL, and gas reserves as of December 31, 2015, based on average commodity prices in effect on the first day of each month in 2015, held flat for the life of the production, except where future oil and gas sales are covered by physical contract terms. This table shows reserves on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a ratio of 6 Mcf to 1 bbl. This ratio is not reflective of the current price ratio between the two products. Oil (MMbbls)

NGL (MMbbls)

Gas (Bcf)

Total (MMboe)

Proved Developed: United States . . . . . . . . . . . . . . Canada . . . . . . . . . . . . . . . . . . . Egypt(1) . . . . . . . . . . . . . . . . . . . North Sea . . . . . . . . . . . . . . . . .

349 68 144 105

150 15 2 1

1,364 759 776 86

727 210 275 120

Total Proved Developed . . . .

666

168

2,985

1,332

Proved Undeveloped: United States . . . . . . . . . . . . . . Canada . . . . . . . . . . . . . . . . . . . Egypt(1) . . . . . . . . . . . . . . . . . . . North Sea . . . . . . . . . . . . . . . . .

60 38 18 12

25 5 – –

209 163 54 19

120 70 27 15

Total Proved Undeveloped . . . . . . . . . . .

128

30

445

232

794

198

3,430

1,564

TOTAL PROVED (1)

Includes total proved reserves of 101 MMboe attributable to a one-third noncontrolling interest in Egypt

As of December 31, 2015, Apache had total estimated proved reserves of 794 MMbbls of crude oil, 198 MMbbls of NGLs, and 3.4 Tcf of natural gas. Combined, these total estimated proved reserves are the volume equivalent of 1.6 billion barrels of oil or 9.4 Tcf of natural gas, of which oil represents 51 percent. As of December 31, 2015, the Company’s proved developed reserves totaled 1,332 MMboe and estimated PUD reserves totaled 232 MMboe, or approximately 15 percent of worldwide total proved reserves. Apache has elected not to disclose probable or possible reserves in this filing. During 2015, Apache added 117 MMboe of proved reserves through exploration and development activity and 7 MMboe through purchases of minerals in-place. We sold a combined 385 MMboe through several divestiture transactions. We recognized a 368 MMboe downward revision in proved reserves, of which 339 MMboe was related to lower product prices. The Company’s estimates of proved reserves, proved developed reserves, and PUD reserves as of December 31, 2015, 2014, and 2013, changes in estimated proved reserves during the last three years, and estimates of future net cash flows from proved reserves are contained in Note 14—Supplemental Oil and Gas Disclosures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Form 10-K. Estimated future net cash flows were calculated using a discount rate of 10 percent per annum, end of period costs, and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months, held flat for the life of the production, except where prices are defined by contractual arrangements. Proved Undeveloped Reserves The Company’s total estimated PUD reserves of 232 MMboe as of December 31, 2015, decreased by 513 MMboe from 745 MMboe of PUD reserves reported at the end of 2014. During the year, Apache converted 73 MMboe of PUD reserves to proved developed reserves through development drilling activity. In North America, we converted 40 MMboe, with the remaining 33 MMboe in our international areas. We sold 240 MMboe and 11


Apache 2015 Summary Annual Report