Mr. John Christmann of Apache reports

APACHE AGREES TO SELL AUSTRALIAN OPERATIONS FOR $2.1 BILLION

Apache Corp. has entered an agreement to sell its Australian subsidiary, Apache Energy Ltd., to a consortium of private equity funds managed by Macquarie Capital Group Ltd. and Brookfield Asset Management Inc. for cash payment of $2.1-billion. The transaction is expected to close mid-year 2015 and is subject to necessary government and regulatory approvals and customary postclosing adjustments. The effective date of the sale is Oct. 1, 2014.

Assets of Apache Energy and its subsidiaries averaged production of approximately 49,000 barrels of oil equivalent per day in March. With the announcement of this sale, Apache is fully exiting its exploration and production business in Australia, but will retain its 49-per-cent ownership interest in fertilizer producer Yara Pilbara Holdings Pty. Ltd. On April 2, 2015, Apache announced the completion of sale of its Wheatstone liquefied natural gas project, and related oil and natural gas properties, to Woodside Petroleum Ltd. for $2.8-billion.

"Today's announcement represents a notable step in Apache's strategic portfolio repositioning. Over the last five years, we have transitioned Apache's primary growth engine to North America onshore through the announcement or completion of approximately $17-billion of asset purchases and $17-billion of asset sales. Following the sale of our Australian assets, approximately 70 per cent of Apache's production will come from North America onshore. Our robust North American position is complemented by our North Sea and Egyptian regions, which have an extensive inventory of prospects and assets that generate free cash flow," said John J. Christmann IV, chief executive officer and president.

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