Apache Corp. has closed the Gulf of Mexico portion of its $1.3 billion acquisition of producing properties fomerly owned by BP. The United Kingdom North Sea portion of the transaction is expected to close within the next two months. Apache paid an adjusted price of $509 million for the Gulf of Mexico properties, which have estimated proved reserves of 72.2 million boe. The price was adjusted from the originally announced $670 million to account for the exercise of preferential rights by third parties involved in some of the properties (a reduction of $70 million), production since the Jan. 1, 2003, effective date of the transaction, and other minor adjustments. The Gulf of Mexico properties are located offshore Texas and Louisiana in areas where Apache has substantial existing operations. Net current production from the acquired properties, after adjustments, is 200 MMcf/d and 19,000 bbl/d of liquids.

The U.S. Department of the Interior’s Minerals Management Service (MMS) Gulf of Mexico Outer Continental Shelf Region (GOMR) said Tuesday that it has received 793 bids from 66 companies on 561 tracts offered in the Central Gulf of Mexico Lease Sale 185. The sale itself will take place Wednesday, March 19, 2003 at 9 a.m. at the Hyatt Regency Hotel in New Orleans. The sale will be WebCast through GoGulfTV at www.gogulf.net beginning at 6:00 P.M. on March 19. Viewers can download the complete broadcast free of charge for viewing at their convenience. It will also be available through the Offshore Oil Scouts Association at www.oosa.com.

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