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Stocks A / Apache Corporation


Subject:  8 rigs lost. Date:  9/1/2005  12:51 PM
Author:  HamletsMill Number:  127 of 144

Apache has reported the loss of eight rigs in the Gulf of Mexico. They have 386 rigs, in total, operating in the GOM. The lost rigs provided APA with approximately 7000 barrel of oil and 12.1 mcf -- roughly 1% of NG and 3% of the company's oil production. It appears that the lost rigs were relatively marginal producers for APA, however there probably is additional damage to some of the operational platforms.

Loss of business insurance should cover nearly all, or most of the costs, depending on how the policy was written.

As deeply unfortunate as the situation is, from the point of view of Apache, Katrina seems to be only a minor setback.
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