A U S T R A L I A A R G E N T I N A C A N A D A E G Y P T N O R T H S E A U . S . C E N T R A L U . S . G U L F

Kitimat LNG

Asia-Pacific Economic Cooperation (APEC) Energy Working Group

May 10, 2011

Certain statements in this presentation contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. These forward-looking statements are based on Apache Corporation’s (Apache) current expectations, estimates and projections about the company, its industry, its management’s beliefs and certain assumptions made by management. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these “forward-looking statements” are identified by words such as “expects,” “believes,” “anticipates” and similar phrases.

Because such statements involve risks and uncertainties, Apache’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. We assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.

Forward Looking Statements

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Kitimat LNG Project – B.C., Canada

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Kitimat LNG Ownership

Jan 2010 - Apache acquires of 51% of the Kitimat LNG Project

Nov 2010 - EOG concludes acquisition of Galveston LNG Inc. taking ownership of 49% of the Kitimat LNG Project

Feb 2011 - Apache and EOG acquire remaining 50% ownership of PTP Pipeline aligning ownership with plant

18 March 2011 - Encana acquires a 30% stake in the Kitimat LNG Project

Apache at 40% remains the operator for the Kitimat LNG Project

Apache continues as Lead LNG Marketer for joint sales.

Apache Canada Ltd.

(40% & Operator)

EOG Resources Canada Inc.

(30%)

Encana Corp.

(30%)

Kitimat LNG Project

November 2010 – Haisla 1st Nation approves land leases

End November 2010 – EOG joins project

February 2011 – PTP capacity acquired

4 March 2011 - KBR selected as FEED Contractor

18 March 2011 – Encana joins project.

Forward Targets:

4Q 2011 - FEED completed

4Q 2011 - SPA(s) concluded

End 2011 – FID

EPC commencement upon FID

4Q 2015 – first LNG production targeted.

Kitimat Project: Recent Milestones & Way Forward

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Kitimat LNG Project Components

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Horn River (~30 Tcf):

Acreage (gross) Ownership:

>400k: Apache & Encana (50%/50%)

>150k: EOG (100%) Spectra Pipeline

Pacific Trail’s Pipelines (PTP)

Ownership as of March 2011: Apache(40%), EOG (30%) & ECA (30%), 1.4 Bcf /day capacity

Kitimat LNG Plant (~5 MMtpa, expandable to ~10 MMtpa)

Ownership: Apache 40%, EOG 30% & Encana 30%

Kitimat LNG Facility Overview

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Located in Bish Cove along the Douglas Channel near Kitimat B.C.

FEED for an initial train of approx. 5 MMtpa export capacity awarded in March 2011.

On-site storage of up to 420,000 m3 of run-down

Expansion capability to approx. 10 MMtpa

Plant will utilize existing hydro power

Well developed local shipping route used by industry for over 40 years

Deep-water port characteristic (over 50 metres) provides ice-free year-round shipping

No capex intensive break-water required

Planning to accommodate a range of LNG ship sizes.

For more info visit: www.kitimatlngfacility.com

Pacific Trails Pipeline (PTP)

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The PTP, when constructed, will provide the Kitimat Terminal with a direct connection to the Spectra Energy Transmission pipeline and other existing pipeline systems

Kitimat acquired full capacity rights in February 2011

Summit Lake connections will provide access to natural gas supplies in British Columbia and Alberta

All major environmental permits received

Clearing and construction period: ~ 3 years

Capacity: ~ 10 MMtpa LNG equivalent.

Summit Lake 4A

PTP

Vast Potential Shale Gas Supply Resources

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Alberta

British Columbia

Ontario

Quebec Saskatchewan Manitoba

Northwest Territories

Horn River Basin and Cordova Embayment

Montney / Deep Basin

Colorado Group

Yukon

British Columbia (OGIP) #

Horn River Basin > 500 Tcf

Cordova Embayment > 200 Tcf

Montney Formation up to 400 Tcf

Total > 1000 Tcf

Source: Canadian Society for Unconventional Gas

Kitimat LNG Terminal

Note: (#) OGIP - Original Gas In Place

Horn River: Development Drilling

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150 ft

320 ft

Horn River Stratigraphy

Klua/Evi Shale

Muskwa/Otter Park Shale

Depth: 8500 ft tvd

13000 ft md

Keg River

Slave Point

Utilising multi-well surface pad design to minimise surface foot-print & lease costs

Incorporating a tapered casing string of 7 x 5.5 inch to reduce costs & maximise completion flexibility

Drill horizontal wells to optimise completion stages per well.

Conventional vs. Unconventional LNG Supplies? With available conventional sources of gas declining..

World LNG demand increasing but the large conventional gas sources available to supply LNG projects are becoming fewer / more expensive.

Exploration of unconventional resources is becoming more prevalent globally.

And unconventional gas supplies growing..

Unconventional gas supplies to the North American markets are approaching the conventional supply levels.

Unconventional gas predicted to be the predominant supply source (in North America by 2030 or sooner.

Asian Buyers now securing increasing amounts of unconventional LNG for future long-term supply requirements..

In 2010, Asian LNG buyers secured LNG supplies, taking unprecedented equity from Australia's CSM projects.

Major Asian LNG buyers are taking large positions in the N.A. unconventional gas plays.

Unconventional gas, particularly from N.A. with its huge supply base, is considered the new frontier to meet future reliable LNG supplies.

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Kitimat LNG poised to move first on shale gas to LNG in NW Canada:

Kitimat LNG is best positioned to capture this opportunity with new project ownership.

As operator, Apache has international oil and gas experience, strong balance sheet and proven track record.

Apache, EOG & Encana in Canada have a diverse supply portfolio to deliver to the Kitimat LNG Project.

Approx. 5 MMtpa LNG facility at Kitimat expandable to approx. 10 MMtpa.

The project has stable jurisdiction with strong political and community support.

Canada has a proven track-record as a reliable exporter of resources, incl. gas.

Shale is now an attractive supply source for Asian Buyers, some of who have acquired acreage in North America.

Kitimat LNG Project shipping is approx. 10 laden days from Japan & Korea, and 12 from China.

Kitimat LNG Project Summary

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Thank you