Page 3 - 3rd draft-Apache Egypt Newsletter

KPC 2016 Highlights

Apache’s other joint venture, Khalda Petroleum Company (KPC), has also had a great year. KPC

2016 undertakings varied from high-rate wells from all basins to high-rate wells from all major

reservoirs. Also KPC focused on early field development, step-out opportunities, infill locations,

and waterflood optimization. This focus has led to a continued development at Ptah, WKAL-A,

Herunefer, and Razzak. An additional 12 wells at Salam will result in an expansion of the
waterflood. KPC successfully drilled and completed two Apollonia horizontal wells and is proud to

advise that Apache and Khalda are the first companies to introduce the frac horizontal technology
to Egypt. This technology will increase production of unconventional gas and decrease uncertainty
for drilling. KPC’s success established a positive reputation at the Ministry of Petroleum. It also

advanced EGPC’s confidence in Apache and KPC.

2016 success in a nutshell