THE CORDILLERA ENERGY PARTNERS III, LLC ACQUISITION A RESOURCE PLAY IN THE APACHE WAY JANUARY 23, 2012
SUMMARY OF TERMS Cordillera Energy Partners III, LLC merges into an Apache subsidiary Full step up in tax basis Transaction value: 2.85 billion Consideration: 2.25 billion in cash 6.273 million shares of common stock (fixed); 0.6…
SUBSTANTIAL OPERATIONS WITH EXCEPTIONAL ACREAGE POSITION 254,000 net acres in a prolific fairway COMPOSITE FAIRWAY Liquidsrich stacked pays 60 productive horizons across 5,000+ of section 14,000 potential locations 50% held production…
MORE THAN DOUBLES OUR POSITION IN A LIQUIDSRICH PLAY Unique bolt on opportunity more of what we know and like 50+ years experience in the Anadarko Basin Drilled 2,500 wells in the area; including 500 in the Granite Wash Existing…
MANY WAYS TO WIN ACROSS VAST ACREAGE PRIMARY TARGETED PLAYS COMPOSITE FAIRWAY APACHE GRANITE WASH CORDILLERA TONKAWA CLEVELAND MARMATON 20 mi Plays Evaluated (000s of net acres) Apache Cordillera Combined APACHE…
THE GRANITE WASH AND MORE Estimated recovery per well* Plays Evaluated EUR Gas Oil NGLs (MBOE) (BCF) (MBO) (MB) Liquids Granite Wash 1,117 3.5 134 400 48% (liquidsrich) Tonkawa (oil) 268 0.5 130 60 71% Cleveland (oil) 181 0.3…
ESTIMATED CENTRAL REGION 2012 GROWTH 70,000 60,000 50,000 BOE/D 40,000 30,000 20,000 10,000 0 Dec. 2011 Dec. 2011 Dec. 2012* Apache Central Region Cordillera *December 2012 forecast based on acquisition economics…
CORDILLERA: A LIQUIDS GROWTH PLAY 53% of production is liquids 80% of revenue from liquids 20% 30% Oil Oil 47% NGL 51% NGL* Gas 29% Gas 23% 6,200 BO/D 4,800 BNGL/D* 58 MMCF/D* Based on production as of 12/12/2011 Revenue…
NGLs PROVIDE ROBUST GAS REALIZATIONS 8.00 6.95/MCF* 7.00 6.00 5.00 4.00 Added NGL Value 3.00/MCF Dry Gas Value 3.00 2.00 1.00 0.00 Dry Gas Well GW Wet Gas Well Wet gas price realization is 2x dry gas at current…
HITTING THE GROUND RUNNING Apache wells (2,500) Apache District office Apache field office Cordillera field office Current Staffing: Tulsa 109 Field 147 Region 256 20 mi 50+ years of drilling, operating and business…
UNLOCKING GRANITE WASH VALUE THROUGH HORIZONTAL DRILLING VERTICAL HORIZONTAL Well Cost: 4.3 MM 8.5 MM Initial Rate: 1.3 MMCF/D 6 MMCF/D 150 BNGL/D 710 BNGL/D 50 BC/D 225 BC/D 417 BOE/D 1,935 BOE/D GROSS EUR: 320 MBOE 853…
UNLOCKING VALUE THROUGH HORIZONTAL DRILLING GRANITE WASH* TONKAWA* Well Cost: 8.5 MM Well Cost: 5.0 MM Initial Rate: 6 MMCF/D Initial Rate: 260 BO/D 710 BNGL/D 610 MCF/D 225 BC/D 78 BNGL/D 1,935 BOE/D 440 BOE/D GROSS EUR: 853…
APACHES 2011 HZ WASH HIGHLIGHTS Jines 1002H Wheat 6783H 449 BOPD, 403 MCFD 248 BOPD, 574 MCFD Adams 1382H 398 BOPD, 486 MCFD APACHE CORDILLERA McGarraugh 1387H APA GW 674 BOPD, 825 MCFD APA CLV APA MAR Stiles 1116H 7.6…
MORE THAN ONE MILE OF STACKED PAYS Apache Elk City 1-23 9,500 Shawnee Tonkawa 10,000 Cottage Grove 10,500 Hogshooter 11,000 Checkerboard Cleveland 11,500 Marmaton Granite Wash Caldwell 12,000 Granite Wash A 12,500 Granite Wash…
SELFFUNDING DEVELOPMENT PROGRAM* Selffunding from 2013 forward 1,000,000 750,000 500,000 250,000 2012 2013 2014 2015 2016 2017 Lease Level Income, M Capex, M *Program for Cordillera assets only. Projections as of…
VISIBLE GROWTH PROFILE ON ACQUIRED ACREAGE Acquisition economics only include 2,000 of the 60 potential 14,000+ identified locations 50 NET PRODUCTION (MBOE/D) 40 30 20 Drilling Program 10 PDP 0 2012 2013 2014 2015…
SUMMARY Unique bolt on opportunity more of what we know and like Rich inventory with premium economics Visible growth in lowrisk, repeatable play Immediately accretive to all metrics A classic Apache transaction: Negotiated.…
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