Apache Corporation says that its subsidiary, Apache PVG Pty Ltd, has commenced oil production from the Pyrenees development in production license WA-42-L in the Exmouth Basin offshore Western Australia. Production from the Crosby, Ravensworth and Stickle wells processed through the floating production, storage and offloading (FPSO) vessel at Pyrenees is expected to be brought on in phases, with approximately half the field ramping up from first oil and the other half over the next six months.

Apache earlier announced first oil production from Apache PVG's Van Gogh Field in production license WA-35-L in the Exmouth Basin. The first 350,000-barrel lifting of oil produced at Apache-operated Van Gogh, located in production license WA-35-L in the Exmouth Basin, is scheduled for the coming week. Apache PVG owns a 52.5-percent interest in the field with INPEX owning the remaining interest.

"We now have two oil fields on production in Australia that will make a significant contribution to Apache's projected growth in 2010," said Rod Eichler, co-chief operating officer and president - International. "Net production from Pyrenees and Van Gogh is projected to quadruple Apache's oil production in Australia.

"Pyrenees and Van Gogh are among a pipeline of projects that will add production from Apache's exploration program in Western Australia and other regions in coming years," Eichler said.

The Crosby, Ravensworth and Stickle oil fields were discovered in 2003 in water depths ranging from 555 to 820 feet approximately 27 miles (45 kilometers) off the coast of Exmouth, Western Australia. BHP Billiton Petroleum operates the Pyrenees development. A subsea gathering system will bring oil from 13 horizontal wells to an FPSO with production capacity of approximately 96,000 barrels of oil per day. Water injection is incorporated in the development to enhance oil recovery. The project has an estimated production life of 25 years.

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