Apache Corp. announced that Argentina's Federal Energy Secretariat has approved Apache Argentina's Gas Plus project to supply 10 million cubic feet (MMcf) per day from the Guanaco and Ranquil-Co fields in Neuquen province to Compania Administradora del Mercado Mayorista Electrico (CAMMESA) at a price of $4.10 per million British thermal units (MMBtu) for one year beginning in January 2010. The approval is Apache's second under the government's Gas Plus program to bring on new supplies through development of tight sands and unconventional gas reserves. To date, Apache is the only company with Gas Plus projects approved for gas marketing, and the company has three additional projects in line for approval. The Federal Energy Secretariat earlier approved Apache's projects to supply 50 MMcf of gas per day from two fields in Argentina's Neuquen and Rio Negro provinces at a price of $5 per MMBtu beginning in 2011. Apache plans to drill four wells at Ranquil-Co and two at Guanaco to develop reserves in the Pre-Cuyo formation 7,500 to 9,500 feet below the surface. The wells will be completed with multiple-stage fracture stimulation procedures to tap non-conventional, low-permeability and low-porosity reservoirs. Development of the fields, located approximately 10 miles (15 kilometers) from Cutral Co. and Plaza Huincul, will also require investments in natural gas processing and transportation. Apache will provide measurement and production facilities for the Gas Plus volumes separate from the rest of the fields' production facilities.

Apache Corp. announced that the Hostetter #1-23H well located in Washita County, Okla., is producing 17 million cubic feet (MMcf) of gas and 800 barrels of liquid hydrocarbons per day. The Hostetter #1-23H is Apache's first operated horizontal well in the prolific Granite Wash play. The well was drilled to a depth of 12,500 feet with a 4,000-foot horizontal section and eight separate fracture-stimulation stages. Apache owns a 72% working interest in the well. By 2009 end, the company will operate four horizontal drilling rigs in the immediate area and plans to drill more than 20 horizontal Granite Wash wells in 2010.

Apache Corp. reported earnings results for the third quarter and nine months ended September 30, 2009. For the nine months, the company reported loss before income taxes of $796,102,000, net income of $870,204,000 or $2.61 diluted per share on total revenues of $6,059,634,000 against income before income taxes of $5,833,110,000, net income of $3,657,567,000 or $10.84 diluted per share on total revenues of $10,452,816,000 for the same period a year ago. The company also reported net cash provided by operating activities of $1,312,742,000 and non-GAAP adjusted earnings of $533,685,000 or $1.58 diluted per share against net cash provided by operating activities of $2,290,655,000 and non-GAAP adjusted earnings of $1,076,236,000 or $3.19 diluted per share for the same period a year ago. For the quarter, the company reported income before income taxes of $870,606,000, net income of $442,016,000 or $1.30 diluted per share on total revenues of $2,332,431,000 against income before income taxes of $1,813,354,000, net income of $1,190,825,000 or $3.52 diluted per share on total revenues of $3,364,884,000 for the same period a year ago. The company also reported net cash provided by operating activities of $2,679,471,000 and non-GAAP adjusted earnings of $1,223,106,000 or $3.62 diluted per share against net cash provided by operating activities of $6,028,568,000 and non-GAAP adjusted earnings of $3,528,059,000 or $10.46 diluted per share for the same period a year ago.