Apache Signs Australian Gas Contract

Apache Corporation announced today that it has signed a new contract to supply gas to a major West Australian power station to be built at Kwinana, south of Perth. The gas will be supplied from the John Brookes field, jointly owned by Apache (55%) and Santos (45%).

The 15-year term of the contract with the plant's developers, Wambo Power Ventures, calls for the delivery of approximately 215 billion cubic feet of natural gas (118 Bcf net to Apache) at a daily rate of 39 million cubic feet (21 MMcf net). The term can be extended an additional 10 years by mutual agreement. First gas delivery is expected by the second half of 2008.

The John Brookes field is located offshore Northwest Australia in the Carnarvon Basin some 35 miles northwest of Apache's operated facilities on Varanus Island.

Apache Corporation is a large oil and gas independent with core operations in the United States, Canada, Australia, Egypt and the United Kingdom sector of the North Sea.