1
                                                                    EXHIBIT 99.2


                              [APACHE LETTERHEAD]



Wednesday, December 21, 1995

                           APACHE AND DEKALB TO MERGE

Houston, TX -- Apache Corporation today announced that it has entered into a
merger agreement with Calgary-based DEKALB Energy Company, under which each of
DEKALB's outstanding shares of stock will be converted into .85 to .9 shares of
Apache common stock. At Apache's closing price yesterday, the merger, including
debt, is valued at approximately $285 million. The transaction has been
approved by both boards of directors. In addition, the holders of a majority of
the DEKALB voting stock have agreed to vote for this transaction at the
shareholders' meeting which will be called to approve the merger.

The merger brings to Apache long-lived Canadian oil and gas reserves estimated
to be approximately 350 billion cubic feet (Bcf) equivalent, including 290 Bcf
of natural gas and 10 million barrels of hydrocarbon liquids. In addition,
DEKALB has probable reserves estimated at approximately 60 Bcf equivalent,
150,000 net undeveloped acres and ownership in 14 gas processing plants (six
operated).

According to Chairman and Chief Executive Officer Raymond Plank, "For the past
two years,  Apache has considered returning to Alberta where we conducted
successful exploration during the 1960s and 1970s before political factors led
us to sell out. Our objective has been to return through merger or acquisition
of a company that has the production, reserves and acreage position to
complement our Lower 48 operations, as well as a compatible, aggressive culture
and solid infrastructure of skilled professionals.

"Canadian exploration companies' share prices have, until recently, been
inflated by overly optimistic gas price expectations," Plank added. "These
erroneous pricing assumptions have spiked drilling and related costs above U.S.
levels. Presently, however, timing and DEKALB's strategic fit create an
opportunity to establish a presence in the largest gas reserve basin in North
America.  Relatively under-explored and under-exploited, the Western
Sedimentary Basin holds the potential to build long-term shareholder value
while DEKALB's rising production profile is expected to make an immediate
contribution to Apache's 1995 results.

"We have a strong fit and good chemistry with DEKALB and look forward to moving
ahead together," Plank concluded.

Located in Alberta and British Columbia, approximately 80 percent of DEKALB's
proved reserves are in 11 fields, seven of which are operated. Current net
daily production from the properties is 63 million cubic feet of gas, 2,000
barrels of oil and
   2
600 barrels of natural gas liquids. Approximately 70 percent of the production
is operated.

Apache and DEKALB will file with the Securities and Exchange Commission a
combined proxy statement/prospectus which, among other things, will provide for
the registration of the Apache common stock to be issued in connection with the
merger. The offering will be made only by means of a prospectus, which will be
issued to the shareholders of DEKALB after the registration statement is
declared effective. Closing is expected in the second quarter of 1995 subject
to satisfaction of certain conditions and receipt of necessary consents and
approvals.

Apache Corporation is an independent energy company engaged in the exploration
for and development and production of natural gas and crude oil. The company's
securities are traded on the New York and Chicago Stock Exchanges under the
symbol APA.

                                     # # #

Investor Relations:  Paul Korus            Media Relations:  Suzanne Best
                     713-296-6662                            713-296-6154