Apache produced 449,034 barrels of oil equivalent (boe) per day in the third quarter, up 34% from the previous year and a 5% increase from the second quarter of 2003. Cash from operations was a record $730 million, up 81% from the year-earlier period and a 14% increase from the second quarter of 2003.

Oil production rose 51% to 228,698 barrels per day in the third quarter, compared with 151,143 barrels per day in the year-earlier period. Natural gas production averaged 1.26 billion cubic feet (bcf) per day, up 19% from 1.06bcf per day in the prior-year period. Natural gas liquids production averaged 9,686 barrels per day, up from 8,081 barrels per day in the prior-year period.

In the first nine months of 2003, Apache earned $856 million surpassing the full-year record of $704 million set in 2001. Apache's cash from operations for the nine months exceeded $2 billion, more than the previous full-year record of $1.9 billion set in 2001.

"Since the beginning of the year, Apache's production has increased by one-third, largely as a result of strategic acquisitions in the North Sea and the Gulf of Mexico but also as a result of our very successful drilling program," said G. Steven Farris, president and chief executive officer. "Exploration success in Egypt and Australia has added future production potential in both of those core areas.

"During the third quarter, we increased production, completed a $200 million acquisition and still ended the period with a debt-to- capitalisation ratio of 28.5%," Farris said.

Apache marked additional significant progress with the beginning of production in China from the Zhao Dong field, which is currently producing around 16,000 barrels per day.

The company also made two oil discoveries in Western Australia's offshore Exmouth Sub-Basin with a 28.57% working interest in Crosby-1 discovery and a 31.501% interest in the Ravensworth-1 discovery.