Apache Shareholders Don't Approve Executive Compensation

Apache Corp. shareholders didn't approve the energy company's executive compensation plan for 2012 at its annual meeting Thursday, making their displeasure with the company's performance known.

Fewer than half of the voting shareholders, 49.8%, voted for the compensation plan for named executives. The vote Thursday is advisory and the board has no legal obligation to make changes to the 2012 pay package.

Apache spokesman John Roper said the company sees the vote as a comment on share performance. Apache shares are down 7.3% from a year ago. Shares fell 1.2% to $80.89 Thursday.

"We want to see our performance improve as well and to do so we need to hit 3% to 5% percent growth and execute our plan. We believe we have the right plan in place to do that," Mr. Roper said.

Apache has said it plans to sell $4 billion in assets this year to focus on North American onshore production, which it thinks will provide the best return, and to rid itself of land that hasn't been as profitable as it hoped. It will use the proceeds to pay down debt and buy back shares.

Chief Executive Steven Farris said during the meeting that he believes the company's share price has lagged because it has fallen short of production expectations and because of anxiety over its position in Egypt.

"We've got a great company, we do a great job, but in the last four or five quarters, we haven't done what we said we were going to do," he said. "We have missed estimates, and we cannot make commitments to shareholders we don't meet."

Praveen Kumar, executive director of UH Global Energy Management Institute at the University of Houston's C.T. Bauer College of Business, said the board doesn't have to do anything in response to Thursday's vote, but it might want to, as such a vote can indicate that shareholders are united in their dissatisfaction. Last year over 95% of shareholders voted to approve the company's executive compensation for 2011.

"It is probably a kid of firing across the bow, indicating to the board that there is shareholder resistance," Mr. Kumar said.

Also at Thursday's meeting, shareholders elected three directors to Apache's board.

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Apache 1Q Profit Falls 10% Amid Weak Commodity Prices

Apache Corp. said it would seek to sell $4 billion in assets this year, doubling its divestiture program as the U.S. oil and gas company tries to pay down debt and boost its stock price.

The move by the Houston company follows similar strategies by Chesapeake Energy Corp. and other independent energy producers, which expanded aggressively during the recent energy boom but now are scaling back. Apache, which engaged in acquisitions in the deep-water U.S. Gulf of Mexico and other places, now plans to focus on production in onshore North America, which it thinks will provide the best return, and jettison land that has turned out less profitable than first hoped. Apache declined to say, however, which assets were on its sales list.

"We've spent the past several months going through assets to see which to keep and which would be worth more to others," Chief Executive Steven Farris said during a call with investors. "The asset list we have generated, at today's prices, would exceed $4 billion."

Apache plans to use the first half of the expected proceeds to pay down its debt. The company reported $11.5 billion in long-term debt for the first quarter, up from $7.4 billion a year ago, partly because of the $3 billion debt-financed acquisition of West Texas energy producer Cordilla Energy Partners III LLC in May 2012 and a $2 billion debt offering in November.

The remaining $2 billion will go toward buying back up to 30 million Apache shares, the company said.

Investors who had been worried that Apache was taking a hands-off approach to share price cheered the announcement. Apache shares climbed 4.2% to reach $81.04 in recent trading, the first highest price since February.

"See, management does care," Wells Fargo analyst David Tameron said in a note to clients.

Apache had been said to be trying to sell properties in the U.S. Gulf Coast, The Wall Street Journal reported in April, citing people familiar with the sales plan. Apache drills globally, with operations in Australia, Alaska, Canada, Egypt and offshore England.

Apache wants to focus more of its efforts on onshore drilling in the U.S., which accounted for more than a quarter of its daily oil and gas output of 781,819 barrels in the first three months of this year, the company said.

Apache's share buyback plan helped turn attention away from what had been a weak first quarter. Apache reported Thursday a profit of $698 million, or $1.76 a share, down from $778 million, or $2 a share, a year earlier. Excluding merger-and-acquisition expenses, asset write-downs and other items, adjusted earnings were down at $2.02 from $3. Revenue fell 10% to $4.08 billion.

Output in Egypt declined by 2%, to 365.6 million cubic feet a day. Mr. Farris told investors The production decline, plus worries about civil unrest in the region, "has had some impact on our stock price."

Analysts polled by Thomson Reuters most recently projected earnings of $2.21 on revenue of $4.31 billion.

Production rose 1.6% to 781,819 barrels of oil equivalent a day, driven by a 45% increase in North American onshore liquid hydrocarbons output.

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Apache Confirms 14 Blocks from Gulf of Mexico Lease Sale

Apache Corporation announced that its subsidiaries were the apparent high bidders on nine shallow water blocks and five deepwater blocks in the recent Gulf of Mexico (GOM) lease sale held by the U.S. Department of the Interior's Bureau of Ocean Energy Management. Lease Sale 227, held March 20 in New Orleans, received 407 bids from 52 companies on 320 tracts, with the high bids totaling more than $1.2 billion.

On the continental shelf, Apache was the sole bidder on all nine blocks where it submitted bids. The company partnered on seven blocks in the Main Pass area, forming a new joint venture with Apache as the operator and holding a 75-percent working interest. The JV is currently shooting seismic over a 633,000-acre area using new wide azimuth technology to collect data and images under and around salt dome structures.

The company holds a 100-percent working interest in its two other shelf leases acquired in the sale. Apache is currently the largest leaseholder on the Gulf of Mexico's continental shelf with interests in more than 500 blocks.

In the deepwater, Apache was high bidder on five of nine bids, with a 50-percent working interest in each lease. Leases were acquired in the DeSoto Canyon, Green Canyon and Mississippi Canyon lease areas, growing the company's prospect inventory with properties near existing industry discoveries. With the exception of one block, all bids were competitive with other GOM operators.

Overall, the company's net exposure for its winning bids was $2.2 million for the shelf and $24.6 million for deepwater blocks.

"With new acreage, new investments and new ideas, we expect that the Gulf of Mexico will continue to generate strong cash flows and excellent returns," said Jon Jeppesen, executive vice president.

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Energy XXI Enters JV with Apache, Highlights GOM, La. Operations

Energy XXI provided an update highlighting activity on the Gulf of Mexico shelf and onshore Louisiana.

The company has entered into an agreement with Apache Corp. to explore for oil and gas pay sands associated with salt dome structures on the central Gulf of Mexico shelf. The area of mutual interest (AMI) includes several salt domes within a 135 block area. In addition, Energy XXI has acquired a 25 percent working interest in 21 non-producing primary-term leases with Apache. A new wide azimuth seismic program is underway to define the potential of the AMI, covering approximately 633,000 acres.

"This joint venture exemplifies our interest in exploring salt structures where new seismic data, remapping and remodeling could uncover significant hidden hydrocarbons," Energy XXI Chairman and Chief Executive Officer John Schiller said. "Our Pendragon exploration well, being drilled in the Vermilion area, is a similar analog. We are very excited about the potential of this new joint venture with Apache, a world-class operator with extensive expertise in the Gulf of Mexico."

At the South Pass 49 field, the company has continued its recompletion program to the D-65 sand. Well A-7 (56.5% WI / 47.08% NRI) was the first recompletion to come online, in December 2012, and now has a stabilized flow rate of 14 million cubic feet of gas per day (MMcf/d) gross. Well A-19 (49.4 WI / 37.0% NRI) was the second recompletion, which came online this month and currently is flowing 6 MMcf/d and 135 barrels of condensate per day gross. Well A-17 (56.5% WI / 47.08% NRI) is currently being recompleted to the D-65 sand and should be online in April. The A-6 well (56.5% WI / 47.08% NRI) recompletion to the D-65 sand will follow A-17. Since the South Pass 49 recompletion program started in October, overall field production has more than doubled.

At West Delta 73 (100% WI / 83% NRI), Maroon, the company's fourth horizontal oil well in the field, was drilled to 8,281 feet true vertical depth (TVD) / 10,071 feet measured depth (MD), including a 1,200-foot horizontal section in the F-40 oil sand. The well is currently testing and under evaluation.

"We continue to grow more confident in the upside of our horizontal oil drilling program," Schiller said. "As anticipated, our horizontal wells are trending right around our mid to high-side case, which represents about a five-fold average increase in recoverable oil per completion."

At South Timbalier 54 (100% WI / 87% NRI), Viper, Energy XXI's first horizontal well in the field, was drilled to 4,849 feet TVD / 6,670 feet MD, including a 680-foot horizontal section in the A-1 oil sand. Viper was placed online in mid-March at approximately 500 barrels of oil equivalent per day (boepd) gross. Viper is the first of a five-well horizontal program planned for the South Timbalier 54 field. Iceman, the next horizontal well in the field, has been drilled to the target depth of 6,620 feet MD, and the horizontal section is currently being drilled. To date, the A-1 sand has produced almost 30 million barrels of oil at South Timbalier 54.

The Pendragon well (50% WI / 40.6% NRI), located on Vermilion Block 178, is currently drilling past 12,400 feet TVD/14,000 feet MD with a proposed total depth of 16,300 feet TVD/ 20,400 feet MD. The exploratory well is targeting multiple sands on the south side of a salt dome.

Onshore Louisiana in St. Mary's Parish, following the acquisition of the McMoRan working interest in the Bayou Carlin field announced at the end of January, Energy XXI acquired an additional working interest in the field from a private company for $34 million. This additional acquisition takes Energy XXI's working interest in the currently producing Landers and Peterson wells at Bayou Carlin to 73.5 percent from 56.5 percent, adding 1,035 boepd in net production to Energy XXI.

"Our recent bolt-on acquisitions at Bayou Carlin represent a strategic opportunity in South Louisiana," Schiller said. "As operator of the field, we are moving quickly to prove up the extent of the discovery with the drilling of the third well in the field."

The Duplantis well (98.7% WI / 73.9% NRI) in the Bayou Carlin field was spud in late February and is drilling below 11,400 feet TVD/MD toward a proposed depth of 20,400 feet TVD/MD. Duplantis is targeting the MA-10 and MA-11A sands currently producing in existing wells, in addition to potential shallower and deeper sands that could add to the field's size.

Current production approximates 46,000 boepd net, including about 30,000 barrels of oil per day, with approximately 5,000 boepd temporarily offline due to various unrelated issues, bringing total capacity to approximately 51,000 boepd. Production for the fiscal third quarter ended March 31, 2013 and is expected to average 44,000 boepd, of which approximately 29,000 barrels per day is oil.

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Apache Could Earn $3B on Rumored Deepwater US Gulf Sale

Apache Corp. could realize up to $3 billion in a rumored sale of its deep water Gulf of Mexico oil and natural-gas assets, analysts said Thursday.

Apache was said to be considering an exit from the Gulf to concentrate on its onshore North America drilling assets, an unnamed person told Bloomberg Wednesday. Apache declined to comment on the rumors, only noting that it announced in its fourth-quarter earnings release that it planned to sell $2 billion in assets.

"When we have something concrete to share, we will do so," Apache spokesman Bill Mintz said.

A sale would undo Apache's relatively recent investment in the Gulf of Mexico, when it acquired Mariner Energy in 2010 for about $2.4 billion in debt and cash.

Operating costs in the Gulf of Mexico have risen since the deadly 2010 Deepwater Horizon accident due to new safety requirements.

Michael Yeager, CEO of BHP Billiton Petroleum said during a talk at the IHS CERAWeek conference in Houston this week that his company's Gulf of Mexico wells now cost about $170 million to drill, up from $120 million before the Deepwater Horizon accident.

Many U.S. oil and natural-gas producers are trimming their exposure to the deep water Gulf of Mexico, where developing wells thousands of feet under the waves can cost billions of dollars. As hydraulic fracturing, or fracking, and other new drilling methods have proliferated, producing oil and gas in onshore shale formations is seen as less technically challenging and more profitable.

In 2012, Apache drilled one operated and five nonoperated wells in the Gulf of Mexico deepwater region, according to the company's web site. Apache finished the year with an interest in 166 blocks in region and about 900,000 gross acres.

Apache held nonoperating interest in two deep water Gulf of Mexico wells, Lucius and Heidelberg, according to its annual report. Apache's Gulf of Mexico total daily production averaged 10,000 barrels of oil and liquids and 48 million cubic feet of natural gas, about 2% of the company's overall production.

Proceeds from the rumored sale could reach $3 billion, analysts at energy investment bank Tudor Pickering Holt & Co. said in a note. Analysts at Simmons & Co International put the figure closer to $2 billion.

"Apache would not be selling a large amount of production or reserves," Simmons analyst Bob Herbert said in a note.

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Apache Could Earn $3B on Rumored Deepwater US Gulf Sale

Apache Corp. could realize up to $3 billion in a rumored sale of its deep water Gulf of Mexico oil and natural-gas assets, analysts said Thursday.

Apache was said to be considering an exit from the Gulf to concentrate on its onshore North America drilling assets, an unnamed person told Bloomberg Wednesday. Apache declined to comment on the rumors, only noting that it announced in its fourth-quarter earnings release that it planned to sell $2 billion in assets.

"When we have something concrete to share, we will do so," Apache spokesman Bill Mintz said.

A sale would undo Apache's relatively recent investment in the Gulf of Mexico, when it acquired Mariner Energy in 2010 for about $2.4 billion in debt and cash.

Operating costs in the Gulf of Mexico have risen since the deadly 2010 Deepwater Horizon accident due to new safety requirements.

Michael Yeager, CEO of BHP Billiton Petroleum said during a talk at the IHS CERAWeek conference in Houston this week that his company's Gulf of Mexico wells now cost about $170 million to drill, up from $120 million before the Deepwater Horizon accident.

Many U.S. oil and natural-gas producers are trimming their exposure to the deep water Gulf of Mexico, where developing wells thousands of feet under the waves can cost billions of dollars. As hydraulic fracturing, or fracking, and other new drilling methods have proliferated, producing oil and gas in onshore shale formations is seen as less technically challenging and more profitable.

In 2012, Apache drilled one operated and five nonoperated wells in the Gulf of Mexico deepwater region, according to the company's web site. Apache finished the year with an interest in 166 blocks in region and about 900,000 gross acres.

Apache held nonoperating interest in two deep water Gulf of Mexico wells, Lucius and Heidelberg, according to its annual report. Apache's Gulf of Mexico total daily production averaged 10,000 barrels of oil and liquids and 48 million cubic feet of natural gas, about 2% of the company's overall production.

Proceeds from the rumored sale could reach $3 billion, analysts at energy investment bank Tudor Pickering Holt & Co. said in a note. Analysts at Simmons & Co International put the figure closer to $2 billion.

"Apache would not be selling a large amount of production or reserves," Simmons analyst Bob Herbert said in a note.

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InterMoor Wraps Up Apache IRIS Installation, Recovery in Gulf of Mexico

InterMoor, an Acteon company, has completed an installation and recovery project for Apache Deepwater LLC (Apache) in Mississippi Canyon Block 148, Well 5 in the Gulf of Mexico. The work scope included the overboard, wet transfer, deployment and recovery of a 30-ton interchangeable riserless intervention system (IRIS) owned by Blue Ocean Technologies. InterMoor undertook the work in water approximately 168 meters deep from Cal Dive's Uncle John semisubmersible vessel.

InterMoor delivered the project using its compensated anchor handler subsea installation system (CASIM) which reduces heave motions relative to vessel motions. CASIM units are pre-charged at the surface to deliver the needed heave compensation for the load at depth. InterMoor's proprietary CASIM method requires less deck space and demands fewer deck operations than the traditional buoy-based heave-compensated landing system. The company also provided the associated rigging equipment and a technician to help facilitate the subsea compensation.

"Apache selected InterMoor for this project on the basis of our service record, the fact that we had the necessary equipment available and because of our experience in subsea operations of this kind," said InterMoor project manager Jacob Heikes. "Although we have used CASIM to deploy and recover many types of subsea equipment, this is the first time that we have used CASIM for IRIS deployment and recovery, and the project's success shows that this proven installation method is suitable for a wide range of subsea equipment."

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Apache Prevents Blowout in Gulf of Mexico Well

HOUSTON - Apache Corp. has detected an underground flow of natural gas at the site of a shallow-water exploratory well in the U.S. Gulf of Mexico, the company and U.S. regulators said.

Apache evacuated 15 nonessential workers and shut in the well, located about 50 miles east of Venice, La., after the company prevented a blowout at the well. About 50 workers remained on board, and there were no injuries.

In a statement posted on its website Thursday, the Bureau of Safety and Environmental Enforcement, which oversees the safety of offshore energy operations, said Apache successfully activated the blowout preventer aboard the jack-up rig to stop natural gas from flowing to the surface. No gas or other pollution has been detected at the location, but additional testing found an underground flow of natural gas, the BSEE said.

A blowout preventer is a tall stack of valves that can supply thousands of pounds of pressure to seal off a well in case of an emergency. The 2010 Deepwater Horizon accident, which has been attributed to a combination of factors including a failed cement job at the bottom of the well and a blowout preventer that failed to close, prompted an increase in regulatory scrutiny in the Gulf. That has included stricter blowout-preventer inspection and maintenance requirements.

In a statement, Apache said natural gas began flowing from the well during drilling operations on Feb. 4. Tests revealed natural gas had migrated from the bottom of the well, about 8,261 feet below the seafloor, to a sand formation about 1,100 feet below the seafloor. The rig was drilling in 218 feet of water.

Michael Bromwich, the former director of the BSEE, said it appeared the company and the government acted properly, but the incident is a sobering reminder that offshore drilling is a risky business.

The incident "undermines the often-repeated but erroneous claim that drilling in shallow water has few risks, and reinforces the conclusion that heightened safety and environmental standards should be applied across the board," Mr. Bromwich said in an email.

Apache said it is now working with well-control experts to stop the flow of natural gas below the seafloor. At the BSEE's direction, Apache is readying another rig to bring to the site in case a relief well needs to be drilled.

Angel Gonzalez contributed to this article.

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Apache Prevents Blowout in Gulf of Mexico Well

HOUSTON - Apache Corp. has detected an underground flow of natural gas at the site of a shallow-water exploratory well in the U.S. Gulf of Mexico, the company and U.S. regulators said.

Apache evacuated 15 nonessential workers and shut in the well, located about 50 miles east of Venice, La., after the company prevented a blowout at the well. About 50 workers remained on board, and there were no injuries.

In a statement posted on its website Thursday, the Bureau of Safety and Environmental Enforcement, which oversees the safety of offshore energy operations, said Apache successfully activated the blowout preventer aboard the jack-up rig to stop natural gas from flowing to the surface. No gas or other pollution has been detected at the location, but additional testing found an underground flow of natural gas, the BSEE said.

A blowout preventer is a tall stack of valves that can supply thousands of pounds of pressure to seal off a well in case of an emergency. The 2010 Deepwater Horizon accident, which has been attributed to a combination of factors including a failed cement job at the bottom of the well and a blowout preventer that failed to close, prompted an increase in regulatory scrutiny in the Gulf. That has included stricter blowout-preventer inspection and maintenance requirements.

In a statement, Apache said natural gas began flowing from the well during drilling operations on Feb. 4. Tests revealed natural gas had migrated from the bottom of the well, about 8,261 feet below the seafloor, to a sand formation about 1,100 feet below the seafloor. The rig was drilling in 218 feet of water.

Michael Bromwich, the former director of the BSEE, said it appeared the company and the government acted properly, but the incident is a sobering reminder that offshore drilling is a risky business.

The incident "undermines the often-repeated but erroneous claim that drilling in shallow water has few risks, and reinforces the conclusion that heightened safety and environmental standards should be applied across the board," Mr. Bromwich said in an email.

Apache said it is now working with well-control experts to stop the flow of natural gas below the seafloor. At the BSEE's direction, Apache is readying another rig to bring to the site in case a relief well needs to be drilled.

Angel Gonzalez contributed to this article.

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Carnarvon, Finder to Farm Out Phoenix Gas Permits to Apache, JX Nippon

Carnarvon Petroleum, together with private partner Finder Exploration, disclosed Wednesday that they have received approval to farm out two of their Phoenix permits offshore Western Australia to Apache Corporation and JX Nippon.

The approval from the National Offshore Petroleum Titles Administrator for the farm-out of the WA-435-P and WA-437-P exploration permits means that Apache can move ahead to spud the Phoenix South prospect, which is tentatively scheduled for late 2013, subject to rig availability and regulatory approvals.

Under the farm-out agreement, Apache will assume operatorship of the permits and hold a majority 40 percent stake, while JX Nippon will have a 20 percent interest. Carnarvon and Finder will pare down their interests from 50 percent to 20 percent.

Apache and JX Nippon are also expected to pay Carnarvon and Finder for past costs on the permits in the current quarter, as well as cover the cost of drilling the Phoenix South well. The project partners are also considering a contingent exploration well targeting the Roc prospect.

The Phoenix South prospect is located within WA-435-P, while the Roc prospect is sited in WA-437-P. Both of the prospects target gas in the lower Triassic reservoirs. Carnarvon revealed in November last year that the gas initially in place estimates for Phoenix South and Roc are each 5.5 trillion cubic feet.

WA-435-P and WA-437-P are permits among the Phoenix cluster; the other permits in the group are WA-443-P, WA-436-P and WA-438-P.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Apache Awards Contract Extension to Flexlife

Subsea services firm Flexlife announced Wednesday that it is hopeful that it will take on more staff next year after being awarded an extension to a contract with Apache North Sea worth approximately $8 million a year.

A team of 30 Flexlife subsea staff based in Aberdeen and Newcastle, UK, are dedicated to the Apache North Sea work at present and this could rise over the next year.

Flexlife – which specializes in subsea integrity and project management – was originally awarded a three-year deal, worth $21 million. The new contract is a one-year extension to project manage work that has a capital expenditure value of more than $208 million. The contract also covers the ongoing integrity management of all the subsea infrastructure and pipeline at the Forties and Beryl fields.

Flexlife CEO Ciaran O'Donnell said in a company statement:

"Building on what has already been a successful three years ensuring subsea integrity and project management for Apache, Flexlife is delighted to have secured an additional one year contract extension. The company has worked closely with Apache to ensure we meet their ambitious objectives for the successful development of their subsea assets."

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Apache Awards Contract Extension to Flexlife

Subsea services firm Flexlife announced Wednesday that it is hopeful that it will take on more staff next year after being awarded an extension to a contract with Apache North Sea worth approximately $8 million a year.

A team of 30 Flexlife subsea staff based in Aberdeen and Newcastle, UK, are dedicated to the Apache North Sea work at present and this could rise over the next year.

Flexlife – which specializes in subsea integrity and project management – was originally awarded a three-year deal, worth $21 million. The new contract is a one-year extension to project manage work that has a capital expenditure value of more than $208 million. The contract also covers the ongoing integrity management of all the subsea infrastructure and pipeline at the Forties and Beryl fields.

Flexlife CEO Ciaran O'Donnell said in a company statement:

"Building on what has already been a successful three years ensuring subsea integrity and project management for Apache, Flexlife is delighted to have secured an additional one year contract extension. The company has worked closely with Apache to ensure we meet their ambitious objectives for the successful development of their subsea assets."

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TAG Oil, Apache Conclude Farmout Agreement for NZ Permits

TAG Oil Ltd. announced that the Company's 100-percent owned New Zealand subsidiaries have concluded an agreement with Apache New Zealand Corporation LDC, which results in an early termination of the Farmout Agreement dated Sept. 1, 2011. This agreement relates to exploration in Petroleum Exploration Permits 38348, 38349 and 50940 located in the East Coast Basin of New Zealand.

Main Highlights of the Agreement:

Apache has paid TAG Oil a lump sum payment to satisfy its obligations related to funding Phase 1 operations under the Farmout Agreement.TAG Oil will retain all assets developed under the Agreement, including all seismic and technical work completed by the Joint Venture.TAG retains its 100% interest in the subject East Coast Basin permits, including the Waitangi Hill shallow oil discovery.

TAG Oil CEO Garth Johnson commented, "Although we are disappointed that Apache's shift in corporate strategy resulted in a refocusing of their international holdings, we do understand that tough decisions sometimes need to be made. TAG remains highly enthusiastic about the future of these prospects: All the work completed to date as a result of our JV Phase 1 activities strengthens our beliefs in the potential of TAG Oil's East Coast Basin holdings. We're also pleased to have full control back over the project with funding in place."

TAG intends to utilize the lump sum payment received by Apache to fund the drilling of up to four East Coast Basin wells as planned in the Apache-agreed Phase 1 work program. These wells will test several high-impact play objectives including the Waipawa and Whangai source rocks that have independently been confirmed to be generating 50 degree API oil. Additionally, these naturally fractured, high-quality source rocks are believed to be widespread across TAG's acreage. Independent assessments have concluded that there are approximately 14 billion barrels of undiscovered original oil in place potential, within less than a fifth of TAG's total land holdings on the East Coast.

Drilling of the first East Coast wells is expected to commence in late March/ April 2013, subject to receipt of the necessary consents from regional government. TAG will utilize conventional vertical drilling techniques similar to those used by TAG Oil over many years in its successful Taranaki Basin operations.

Mr. Johnson concluded: "It was a pleasure to have had the opportunity to work closely with Apache. Our work together provided important geotechnical and operational related work, which has confirmed our belief in the major potential of this project, and advanced it to drill-ready status. Furthermore, TAG's cash flow and assets have grown dramatically since we first signed the agreement with Apache. So the Company can now fund further drilling operations and exploration activities from a place of strength and greater flexibility."

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AusGroup Snags Extension Work with Apache Energy

Singapore-listed AusGroup disclosed late Wednesday that through its subsidiary AGC Industries, it has been awarded an extension of its existing contract with Apache Energy for ongoing works on Varanus Island and associated offshore facilities.

Valued around $16 million, scope of works involves mechanical services, sheet metal fabrication, scaffolding and rigging and instrumentation and electrical services.

AGC will also provide minor capital works services including the fabrication and installation of pipe and structural work, roofing and wall cladding, painting and protective coatings, piping and, electrical upgrades.

AGC's involvement on site will extend to shutdown works.

Commenting on AusGroup's expected performance moving into the rest of 2013, OSK Research's analyst Lee Yue Jer said: "We continue to expect a good order win momentum."

Located off the northwest coast of Western Australia's Pilbara region, the Varanus Island Processing Hub consists of oil terminal facilities, gas processing trains, low temperature separation and stabilization as well as gas compression, water treatment and reinjection.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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AusGroup Snags Extension Work with Apache Energy

Singapore-listed AusGroup disclosed late Wednesday that through its subsidiary AGC Industries, it has been awarded an extension of its existing contract with Apache Energy for ongoing works on Varanus Island and associated offshore facilities.

Valued around $16 million, scope of works involves mechanical services, sheet metal fabrication, scaffolding and rigging and instrumentation and electrical services.

AGC will also provide minor capital works services including the fabrication and installation of pipe and structural work, roofing and wall cladding, painting and protective coatings, piping and, electrical upgrades.

AGC's involvement on site will extend to shutdown works.

Commenting on AusGroup's expected performance moving into the rest of 2013, OSK Research's analyst Lee Yue Jer said: "We continue to expect a good order win momentum."

Located off the northwest coast of Western Australia's Pilbara region, the Varanus Island Processing Hub consists of oil terminal facilities, gas processing trains, low temperature separation and stabilization as well as gas compression, water treatment and reinjection.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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AusGroup Snags Extension Work with Apache Energy

Singapore-listed AusGroup disclosed late Wednesday that through its subsidiary AGC Industries, it has been awarded an extension of its existing contract with Apache Energy for ongoing works on Varanus Island and associated offshore facilities.

Valued around $16 million, scope of works involves mechanical services, sheet metal fabrication, scaffolding and rigging and instrumentation and electrical services.

AGC will also provide minor capital works services including the fabrication and installation of pipe and structural work, roofing and wall cladding, painting and protective coatings, piping and, electrical upgrades.

AGC's involvement on site will extend to shutdown works.

Commenting on AusGroup's expected performance moving into the rest of 2013, OSK Research's analyst Lee Yue Jer said: "We continue to expect a good order win momentum."

Located off the northwest coast of Western Australia's Pilbara region, the Varanus Island Processing Hub consists of oil terminal facilities, gas processing trains, low temperature separation and stabilization as well as gas compression, water treatment and reinjection.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Apache Promotes Executives To Lead Worldwide Growth Initiatives

Since 2010, Apache has completed more than $16 billion in acquisitions across its global portfolio. In addition, Chevron recently joined the Kitimat LNG project -- a move that is expected to help Apache monetize two of the largest natural gas resources in North America -- Horn River and Liard in British Columbia, Canada -- through a planned liquefied natural gas project on the province's northwest coast.

"These events have significantly expanded the scope and breadth of Apache's operations," said G. Steven Farris, Apache's chairman and chief executive officer. "Simply put, we are bigger, stronger and more diverse than ever as we head into 2013."

To accommodate this growth, Thomas E. Voytovich will assume the newly created position of executive vice president of international operations, with responsibility for all of Apache's regional activities outside the U.S. Lower 48, excluding the Kitimat gas monetization project.

Voytovich has served as region vice president and general manager of Apache's Egypt operations since 2009. Earlier, he was vice president of the Central Region from 2006 to 2009 and the region's exploration manager from 2004 until 2006. Prior to joining Apache in 1993, he worked in geological, engineering and management positions with Shell Oil Co., Petro-Lewis, Berexco, and Hillin-Simon Oil Co. Voytovich received a bachelor of science degree in geological engineering from Michigan Tech and is an American Association of Petroleum Geologists (AAPG) Certified Petroleum Geologist.

Thomas M. Maher, currently vice president and managing director of Apache's operations in Australia, will assume the role of vice president and general manager of Apache's Egypt operations. Prior to his promotion to vice president in Australia in 2010, Maher served in Egypt as manager of geology from 2002 to 2005 and manager of exploration from 2005 until 2010. He also was exploration manager of the Central Region from 1995 to 2002. Prior to joining Apache, he worked in various exploration and development geology assignments with Cotton Petroleum and Texaco in the Mid-continent, Rockies and China. Maher holds a bachelor of science degree in geology from the University of Massachusetts, a master's degree in geology from Miami University (Ohio), and an MBA from the University of Phoenix. He is an AAPG Certified Petroleum Geologist.

Faron J. Thibodeaux has been promoted to vice president and managing director in Australia. He joined Apache in 2008 and served most recently as director of operations in Australia. In 2011, Thibodeaux was transferred to Australia from Egypt, where he was the drilling manager. Prior to joining Apache, he worked for Chevron and Unocal in various engineering and management positions, including assignments in the Gulf of Mexico, Indonesia, Cambodia, and Thailand. He holds a bachelor of science degree in petroleum engineering from the University of Louisiana at Lafayette.

As a result of the change in operatorship of Kitimat LNG and Apache's continued focus on the upstream development of Horn River and Liard, Timothy O. Wall will lead the initiative as president of Kitimat Upstream Operations. Wall has served as region vice president and president of Apache Canada Limited since 2009. Prior to these Canadian leadership roles, Wall held several international positions for Apache Corporation. He first joined Apache in 1990 as an engineer in Houston, and moved to Midland as Permian Basin district manager in 1993. He became Gulf Coast production manager in 1996, country manager for China in 1997, Central Region operations manager in 2000, and North Sea operations manager in 2004. In 2006, he assumed the positions of Australia Region vice president and managing director of Apache Energy Ltd. Wall graduated from Texas A&M University with a bachelor of science degree in petroleum engineering.

Robert Spitzer will join the Kitimat Upstream Operations team as executive vice president of development. Spitzer has held leadership positions in Apache's exploration program in Canada since joining the company in 1999. Prior to joining Apache, he held geology and exploration management positions at Shell Canada. He holds degrees in geology and geography from McMaster University.

Janine J. McArdle will continue as senior vice president of gas monetization and president of Kitimat LNG. McArdle served as vice president of oil and gas marketing from 2002 to 2010, directing Apache's worldwide crude oil and natural gas marketing activities. Prior to joining Apache, she served in management positions with Aquila Europe Ltd., Aquila Energy Marketing and Hesse Gas, and was a member of the board of directors of Intercontinental Exchange, the electronic trading platform. McArdle holds a bachelor's degree in chemical engineering from the University of Nebraska and an MBA from the University of Houston.

Timothy J. Sullivan has been promoted to region vice president and president of Apache Canada Limited, replacing Wall. Sullivan joined Apache in 1986 and has served as reservoir engineering manager of the Central Region since 1997. Prior to joining Apache, he served in various engineering roles for Cotton Petroleum and Texaco. He holds a bachelor of science degree in civil engineering from Iowa State University.

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