AT A GLANCE. US$16.9 billion. US$52 billion. 41 million 5,299

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1 APACHE AT A GLANCE Apache s oil and natural gas operations reach from the United States to Canada, Egypt s Western Desert, the North Sea, Australia and Argentina. Our global exploration program is seeking new resources in promising new areas such as offshore Kenya.

2 AT A GLANCE Established in 1954, Apache Corporation has grown to become one of the world s leading independent oil and gas exploration and companies with US$52 billion in total assets as of year-end Apache Kenya Ltd, a subsidiary of Apache Corporation, plans to drill an exploratory well in Block L8 offshore Kenya in the Indian Ocean beginning in the third quarter of Block L8 is located about 70 kilometres offshore, east of Kilifi and Malindi. Apache s growth is the work of a diverse team of committed people who share values of integrity, hard work and respect for others. The company provides its employees with the latest technology and empowers them to make the decisions to fuel its growth. Apache stretches the limits of what s possible through determination, adaptability, discipline, a sense of urgency and a long-term perspective PROVED RESERVES 2.99 billion BARRELS OF OIL EQUIVALENT 2011 PRODUCTION 748,000 BARRELS OF OIL EQUIVALENT PER DAY 2011 revenue US$16.9 billion 2011 total assets US$52 billion total acreage (gross) 41 million total employees 5,299 With operations in the United States, Canada, the North Sea, Egypt, Australia and Argentina as well as exploration activities in other nations, Apache s critical mass of exploration acreage, cash-generating and financial flexibility enables the company to explore for new resources, acquire properties with upside potential and enhance from mature fields with new investment and more efficient operations.

3 APACHE S PLANS IN KENYA Apache is exploring for world-class oil resources in the emerging area of East Africa. Exploring for oil in deep water thousands of meters below the Indian Ocean is an exciting but risky business involving the efforts of many trained professionals geologists, geophysicists and engineers who work closely with Kenyan Ministry officials, the National Oil Corporation and local consultants. Apache employs advanced technologies to identify prospects with the greatest chance of success, including 3D seismic surveys that provide images of the subsurface. After the well location is confirmed, a modern deep-water drill ship moves into position for drilling operations that may last two months or more. If the well is successful and oil is discovered, additional wells will be drilled to locate enough resource to make the project economically attractive to the oil companies and the government. A successful project may take six to 10 years from drilling the first well to the first oil produced and sold. Kenya LAMU Mbawa-1 MALINDI KILIFI BLOCK L-08 MOMBASA Tanzania WHERE IS THE WELL LOCATED? Apache will be drilling in the northeastern corner of Block L8, about 70 km east of Malindi within Kenya s exclusive economic zone (EEZ). The drilling vessel will not disturb fish or fishing vessels in areas of the Indian Ocean where fishing is normally undertaken. The drilling operation will also not disturb tourism operations or any other commercial operations along the Kenyan coast. WILL THE AREA BE CORDONED OFF IF OIL IS FOUND? The area will not be cordoned off. The immediate area around the drilling ship will be isolated during the drilling operation. WHAT WILL HAPPEN IF OIL IS NOT FOUND? If the well is not successful, it will be plugged with cement in accordance with internationally accepted procedures to ensure no underground fluids are released to the environment.

4 POTENTIAL ECONOMIC BENEFITS Oil exploration and development is a partnership that offers economic opportunities for Kenya. The benefits of successful oil exploration may be seen by the Kenyan people in many different forms: The Government will earn revenues from sale of oil that can be used for the nation s development. Infrastructure such as roads and ports may be improved as a result of petroleum operations during development and. This also will benefit the local communities. Opportunities to supply materials and services to oil development projects may result in employment for local residents. These opportunities will depend on the ability of Kenyans to develop the necessary capabilities and standards. Fishermen may benefit through improved markets for their products. Oil companies corporate social responsibility programs generally are focused in communities in the vicinity of operations. Apache operates the Ningaloo Vision FPSO in the Indian Ocean off the northwest coast of Australia. The Government will decide how revenues from oil will be used. The Government may decide to allocate some funds for the development of social infrastructure schools, hospitals and other needed projects in areas where oil and gas are found. ENVIRONMENTAL STEWARDSHIP Kenya s National Environment Management Authority (NEMA) reviewed and approved an Environmental Impact Assessment report submitted by Apache Kenya Ltd with the assistance of ESF Consultants of Kenya, an environmental consulting firm. The report details Apache s comprehensive waste management and oil spill contingency plans. All wastes created during the drilling project will be disposed of appropriately to ensure no harm to fisheries, tourist sites and the environment. Apache and its contractors are adequately prepared for possible oil spills using internationally approved procedures. Apache is working closely with the Ministry of Fisheries Development, the Kenya Maritime Authority, the Kenya Wildlife Service, the National Oil Spill Response Committee and other organizations to ensure the drilling operation is conducted safely and efficiently. HOW CAN WE STAY INFORMED? While drilling is under way, the most efficient methods will be used to communicate with communities in case of emergency or other necessary announcements. When drilling ends, Apache and its partners will announce the results of the operation.

5 CULTURE OF RESPONSIBILITY Apache is committed to operating in a safe and environmentally responsible manner and building enduring relationships with the communities where it operates. Apache has a successful track record of operating in sensitive marine environments like the Gulf of Mexico, Alaska, the North Sea and the Indian Ocean off Western Australia. Apache has undertaken seismic, drilling and operations including deployment of a floating, storage and offtake vessel in waters adjacent to the Ningaloo Reef World Heritage Site in the Indian Ocean off the Australian coast. As one of the industry s most active explorers, Apache has substantial experience conducting 3-D seismic operations in ways that minimize the impact on marine environments. Apache recently completed a 3D survey on block L8 in Kenya without incident or impact on the environment. Apache s technical staff has taken important roles in development of oil spill containment systems in the Gulf of Mexico, the North Sea and the Indian Ocean. These systems provide well containment equipment and technology with the goal of being prepared to respond to well control incidents in deepwater drilling operations. Around the world, Apache employees are empowered to ensure a safe workplace and environmentally responsible operations. IN THE COMMUNITY Apache s corporate social responsibility programs place emphasis on education. An example is found in Egypt. Springboard Educating the Future, a U.S.-based nonprofit organization established by Apache, collaborated with Egypt s National Council for Childhood and Motherhood (NCCM) and the Sawiris Foundation for Social Development to build 201 schools for young girls in poor rural villages in Egypt. Community schools are powerful catalysts for change in the rural villages. There is no tool for development more effective than the education of girls and women. No other policy is as likely to raise economic productivity, lower infant and maternal mortality, improve nutrition, promote health and increase the chances of education of the next generation.

6 AUSTRALIA 2011 natural gas 185,079 Mcf/day 38,228 barrels/day 329 mmboe 8.8 million egypt 2011 natural gas 365,418 Mcf/day 103,961 barrels/day 292 mmboe 9.7 million north sea 2011 natural gas 2,284 Mcf/day 54,545 barrels/day 197 mmboe 785,553 ARGENTINA 2011 natural gas 212,311 Mcf/day 12,615 barrels/day 117 mmboe 3.7 million canada 2011 natural gas 632,550 Mcf/day 20,210 barrels/day 765 mmboe 7.5 million united States 2011 natural gas 864,742 Mcf/day 141,526 barrels/day 1,290 mmboe 10.3 million argentina canada north sea egypt united STATES australia apache corporation 2000 Post Oak Boulevard, Suite 100 Houston, Texas Cover photo courtesy of Odfjell Drilling