Apco Reports First-Quarter Results

  Apco Reports First-Quarter Results

Business Wire

TULSA, Okla. -- May 07, 2013

Apco Oil and Gas International Inc. (NASDAQ:APAGF) today announced that for
the three-month period ended March 31, 2013, it generated unaudited net income
attributable to Apco of $9.9 million, or $0.34 per share, compared with net
income of $10.1 million, or $0.34 per share for the same period in 2012.

Net income decreased quarter-to-quarter as the benefits of higher operating
revenues were offset by the combination of greater costs and operating
expenses, lower equity income from Argentine investment, and higher income tax

For the first quarter of 2013, total operating revenues increased by $5.2
million compared with the same period in 2012. Sales revenues from Apco’s
Colombian operations contributed to the increase in operating revenues in
first-quarter 2013. Benefits realized from the Oil Plus hydrocarbon subsidy
program in Argentina also had a favorable impact on revenues during
first-quarter 2013.

During the first quarter of 2013, the combination of higher production and
lifting costs due in part to inflation in Argentina, greater depreciation
expense, and higher foreign exchange losses was partially offset by lower
exploration expense. For the quarter, total costs and operating expenses
increased by $2.2 million compared with the same period in 2012.

Apco also experienced lower equity income from its 40.72 percent interest in
Petrolera Entre Lomas S.A. (Petrolera). During first-quarter 2013, the impact
of lower operating revenues and higher operating costs contributed to a
decrease of $2.9 million in equity income from Argentine investment compared
with first-quarter 2012.

Income tax expense increased by $234,000 due to higher taxable income in
Argentina during the first quarter of 2013 compared with the same period in

2013 Capital Program and Operational Update

During first-quarter 2013, capital expenditures of $13.3 million attributable
to Apco’s consolidated interests were invested primarily in development and
exploration drilling in Neuquén basin properties and exploration drilling in

In addition to the previously announced exploration wells drilled in Colombia,
Apco participated in the drilling of four development wells and two
exploration wells in the Neuquén basin.

“We are pleased to announce another discovery well drilled in the southern
part of our Agua Amarga exploration permit in Argentina,” said Thomas Bueno,
Apco’s president.

“We expect to have the results of our other exploration well drilled in the
western part of the Bajada del Palo concession in the second quarter. Our
development drilling campaign has now hit full stride, and additional
exploration activities – including investments targeting Vaca Muerta in our
Coirón Amargo block - are scheduled to commence in the next few months,” Bueno

Apco Oil and Gas International Inc.
Summary of Earnings
(In Thousands of Dollars Except Per Share Amounts)            
                                                      2013    2012
Three months ended Mar 31                                     
Operating revenue                                      35,279  30,076
Costs and operating expenses                           27,271  25,026
Investment income                                      5,465   8,338
Net income attributable to Apco                        9,933   10,076
Per share                                              0.34    0.34

About Apco Oil and Gas International Inc. (NASDAQ: APAGF)

Apco Oil and Gas International Inc. is an international oil and gas
exploration and production company with interests in nine oil and gas
concessions and two exploration permits in Argentina, and three exploration
and production contracts in Colombia. More information is available at
www.apcooilandgas.com. Go to http://www.b2i.us/irpass.asp?BzID=1671&to=ea&s=0
to join our e-mail list.

Our reports, filings, and other public announcements may contain or
incorporate by reference statements that do not directly or exclusively relate
to historical facts. Such statements are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. We make these
forward-looking statements in reliance on the safe harbor protections provided
under the Private Securities Litigation Reform Act of 1995. You typically can
identify forward-looking statements by various forms of words such as
"anticipates," "believes," "seeks," "could," "may," "should," "continues,"
"estimates," "expects," "forecasts," "intends," "might," "goals,"
"objectives," "targets," "planned," "potential," "projects," "scheduled,"
"will" or other similar expressions. These forward-looking statements are
based on management's beliefs and assumptions and on information currently
available to management and include, among others, statements regarding:

  *Amounts and nature of future capital expenditures;
  *Volumes of future oil, natural gas, and LPG production;
  *Expansion and growth of our business and operations;
  *Financial condition and liquidity;
  *Business strategy;
  *Estimates of proved gas and oil reserves;
  *Reserve potential;
  *Development drilling potential;
  *Cash flow from operations or results of operations;
  *Seasonality of natural gas demand; and
  *Oil and natural gas prices and demand.

Forward-looking statements are based on numerous assumptions, uncertainties
and risks that could cause future events or results to be materially different
from those stated or implied in this announcement. Many of the factors that
will determine these results are beyond our ability to control or predict.
Specific factors that could cause actual results to differ from results
contemplated by the forward-looking statements include, among others, the

  *Availability of supplies (including the uncertainties inherent in
    assessing, estimating, acquiring and developing future oil and natural gas
    reserves), market demand, volatility of prices, and the availability and
    cost of capital;
  *Inflation, interest rates, fluctuation in foreign currency exchange rates,
    and general economic conditions (including future disruptions and
    volatility in the global credit markets and the impact of these events on
    our customers and suppliers);
  *The strength and financial resources of our competitors;
  *Development of alternative energy sources;
  *The impact of operational and development hazards;
  *Costs of, changes in, or the results of laws, government regulations
    (including climate change regulation and/or potential additional
    regulation of drilling and completion of wells), environmental liabilities
    and litigation;
  *Political conditions in Argentina, Colombia and other parts of the world;
  *The failure to renew participation in hydrocarbon concessions granted by
    the Argentine government on reasonable terms;
  *Risks related to strategy and financing, including restrictions stemming
    from our loan agreement and the availability and cost of credit;
  *Risks associated with future weather conditions, volcanic activity and
  *Acts of terrorism; and
  *Additional risks described in our filings with the Securities and Exchange
    Commission ("SEC").

Given the uncertainties and risk factors that could cause our actual results
to differ materially from those contained in any forward-looking statement, we
caution investors not to unduly rely on our forward-looking statements. We
disclaim any obligations to and do not intend to update the above list or to
announce publicly the result of any revisions to any of the forward-looking
statements to reflect future events or developments.

In addition to causing our actual results to differ, the factors listed above
may cause our intentions to change from those statements of intention set
forth in this announcement. Such changes in our intentions may also cause our
results to differ. We may change our intentions, at any time and without
notice, based upon changes in such factors, our assumptions, or otherwise.

Investors are urged to closely consider the disclosures and risk factors in
our most recent annual report on Form 10-K filed with the SEC and our
quarterly reports on Form 10-Q available from our offices or from our website
at www.apcooilandgas.com.


Apco Oil and Gas International Inc.
Media Contact:
Kelly Swan, 539-573-4944
Investor Contact:
David Sullivan, 539-573-9360
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