EXHIBIT 99.1
NEWS
APACHE CORPORATION LOGO
2000 Post Oak Boulevard
Suite 100
Houston, Texas 77056-4400
(713) 296-6000
CONTACTS:
(EXXONMOBIL): BOB DAVIS (713/656-7544)
(APACHE MEDIA): TONY LENTINI (713/296-6227)
(APACHE INVESTOR): ROBERT DYE (713/296-6662)
(WEB SITE): WWW.APACHECORP.COM
FOR RELEASE AT 7 A.M. CENTRAL TIME
EXXONMOBIL AND APACHE ANNOUNCE AGREEMENT
TO OPTIMIZE EXPLORATION AND DEVELOPMENT IN WEST TEXAS, WESTERN
CANADA, LOUISIANA AND GULF OF MEXICO
HOUSTON, May, 24, 2004--ExxonMobil Corporation (NYSE: XOM) and Apache
Corporation (NYSE, NASDAQ: APA) today announced a program that will capitalize
on the respective strengths and assets of both companies to optimize hydrocarbon
exploration and development in the United States and Canada. The agreement
provides for transfers and joint venture activity across a broad range of
prospective and mature properties in West Texas, Western Canada, onshore
Louisiana and the Gulf of Mexico Continental Shelf, and is expected to increase
the realized value of the portfolio for both companies. Apache's participation
in this agreement will include a cash payment of $385 million. The parties will
now work together to close the various transactions with more definitive
agreements.
ExxonMobil agreed to transfer its interests in 28 mature producing oil
and gas fields in West Texas and New Mexico with current gross production of
about 10,000 oil-equivalent barrels per day and will retain a revenue interest
indexed to oil price through 2009. ExxonMobil will retain a 50 percent working
interest in all properties beneath the currently producing intervals.
-more-
EXXONMOBIL-APACHE AGREEMENT--ADD 1
In the Western Canadian Province of Alberta, ExxonMobil's subsidiary,
ExxonMobil Canada Energy will farm out its interest in approximately 300,000
acres of undeveloped property interests in mature areas to Apache Canada Ltd.
Apache will drill and operate more than 250 wells over an initial two-year
period with upside for further drilling. ExxonMobil Canada will retain a 37 1/2
percent lessor royalty on fee lands and 35 percent of its working interest on
ExxonMobil leasehold as to any production resulting from the drilling program.
Regarding onshore Louisiana and Gulf of Mexico shelf acreage, the
parties jointly will explore for deep gas on more than 800,000 acres of
high-potential Apache onshore and offshore properties for an initial period of
five years, with provisions for extension. In order to expedite exploration, the
agreement provides flexibility on participation and operatorship. ExxonMobil
will operate high-cost, deep-gas prospects that rely on state-of-the-art
technology and Apache may pursue and operate shallower prospects whether
ExxonMobil chooses to participate or not.
"We look forward to implementing this agreement with Apache
Corporation, which covers such a broad portfolio of opportunities for our two
companies," said Harry J. Longwell, ExxonMobil Director and Executive Vice
President. "This allows us to create more shareholder value from mature
producing properties and large undeveloped acreage positions, and gives us
access to new deep gas prospects in Louisiana both on and offshore. It has been
a pleasure to work together to determine how best to take advantage of the
relative strengths and assets of both parties to greatly increase both the
near-term and long-term value of what we held separately."
"We are pleased to have the opportunity to consummate such a
far-reaching, value-added transaction with ExxonMobil," said G. Steven Farris,
Apache's president, chief executive officer and chief operating officer. "The
work necessary to put this transaction together took several months during which
time ExxonMobil's people, at every level, were a pleasure to work with. It is
apparent why ExxonMobil is the largest and most respected energy company in the
world, and we look forward to working with them in our expanded relationship to
add value for our respective shareholders."
-more-
EXXONMOBIL-APACHE AGREEMENT--ADD 2
Exploration agreements for North American acreage would add to
ExxonMobil's industry leading portfolio, the largest in terms of proved reserves
and production. North American Operations contributed approximately 36 percent
of ExxonMobil's 2003 worldwide production on an oil-equivalent basis and 37
percent of its Upstream earnings. With interests in more than 40 producing Gulf
of Mexico fields, development projects under way, participation in
high-potential discoveries and a strong inventory of prospects, ExxonMobil is
well positioned for future growth. The company also holds interests in
approximately 600 exploration blocks throughout the Gulf of Mexico encompassing
more than 3.4 million gross and 2.8 million net acres.
Apache Corporation is a large oil and gas independent with core
operations in the United States, Canada, the United Kingdom North Sea, Egypt and
Western Australia. For Apache, the agreement adds production in the Permian
Basin, which is one of the company's core areas, and provides access to a
significant new acreage position in Canada as well as a world-class partner for
deep gas exploration in South Louisiana and the Gulf of Mexico.
-end-
This release contains certain "forward-looking statements" as defined
by the Private Securities Litigation Reform Act of 1995, including, without
limitation, expectations, beliefs, plans and objectives regarding the potential
transactions and ventures discussed in this release. Among the important factors
that could cause actual results to differ materially from those indicated by
such forward-looking statements are the successful negotiation, approval, and
execution of definitive agreements, the availability of needed personnel and
equipment for the future exploration and development, fluctuations in oil and
gas prices, and general economic conditions.