Apco Reports Second-Quarter Results

  Apco Reports Second-Quarter Results

Business Wire

TULSA, Okla. -- August 6, 2013

Apco Oil and Gas International Inc. (NASDAQ:APAGF) today announced that for
the three and six-month periods ended June 30, 2013, it generated unaudited
net income attributable to Apco of $13.5 million and $23.5 million, or $0.46
and $0.80 per share, compared with net income of $12.7 million and $22.8
million, or $0.43 and $0.77 per share for the same periods in 2012.

Net income for the quarter and year-to-date periods was higher than the same
periods in 2012 as the benefits of higher operating revenues were partially
offset by the combination of greater costs and operating expenses, lower
equity income from Argentine investment, and higher income tax expense.

Total operating revenues increased by $8.8 million and $14.0 million during
the second quarter and first six months of 2013 compared with the same periods
in 2012. Sales revenues from Apco’s Colombian operations and benefits realized
from the Oil Plus hydrocarbon subsidy program in Argentina were the primary
drivers of higher operating revenues experienced in 2013.

Total sales volumes applicable to Apco’s consolidated interest on a barrel of
oil equivalent (BOE) basis were 4 percent higher than second-quarter 2012 and
2 percent higher than the first six months of 2012.

Total costs and operating expenses for the quarter and the six months
increased by $6.6 million and $8.9 million, respectively, primarily the result
of higher production and lifting costs, depreciation expense, selling and
administrative expense, and higher foreign exchange losses. The year-to-date
period also benefited from lower exploration expense compared with 2012.

The second quarters of 2013 and 2012 benefited from one-time credits to other
income attributable to farm-outs of part of the company’s working interests in
properties in Colombia and Argentina.

Apco also experienced lower equity income from its 40.72 percent interest in
Petrolera Entre Lomas S.A. (Petrolera). During the second quarter and first
six months of 2013, the impact of lower operating revenues and higher
operating costs contributed to a decrease of $1.4 million and $4.3 million in
equity income from Argentine investment compared with the comparable periods
in 2012.

2013 Capital Program and Operational Update

During the first six months of 2013, capital expenditures of $27.6 million
attributable to Apco’s consolidated interests were invested primarily in
development and exploration drilling in Neuquén basin properties and
exploration drilling in Colombia.

Apco participated in the drilling of 13 development wells and two exploration
wells in the Neuquén basin in the first six months of the year. An additional
four wells were in various stages of drilling and completion at the end of the
second quarter.

In Colombia, Apco participated in the drilling of two wells in the Llanos 32
block. The Bandola-1 well was put on production in April and had a favorable
impact on revenues in the second quarter. The second well was determined to be
unproductive.

Additional activities in the first six months included the acquisition of 3D
seismic information in the Coirón Amargo block in Argentina and the Llanos 32
block in Colombia.

In July of 2013, Apco received the remaining governmental approval of its
agreements with the province of Tierra del Fuego to extend the term of the
company’s three concessions by the ten years provided for by Argentine
hydrocarbon law. The ten-year extensions for all three concessions run through
August 17, 2026.

Under the extensions, Apco and its partners agreed to pay a total bonus of $5
million and spend $49 million for future exploitation and exploration. In
addition, the provincial production tax increases from the current level of 12
percent to 15 percent and could increase up to a maximum of 17.5 percent
depending on future increases in product price realizations.

“We are pleased to announce approval of our extension agreements for our
properties in the province of Tierra del Fuego,” said Michael Kyle, Apco’s
president and chief operating officer.

“The extension agreements extend the reserve life of our properties and allow
for a continued stream of investments while supporting future employment for
local residents. Negotiations for the extension of the portion of the Entre
Lomas concession in the province of Río Negro are advancing and we hope to
have an approved agreement this year,” Kyle added.


Apco Oil and Gas International Inc.
Summary of Earnings
(In Thousands of Dollars Except Per Share Amounts)           
                                                     2013    2012
Three months ended June 30                                   
Operating revenue                                     41,790  32,967
Costs and operating expenses                          29,855  23,249
Investment income                                     6,122   7,163
Net income attributable to Apco                       13,520  12,680
Per share                                             0.46    0.43
                                                                  
                                                                  
                                                     2013    2012
Six months ended June 30                                     
Operating revenue                                     77,069  63,043
Costs and operating expenses                          57,126  48,275
Investment income                                     11,587  15,501
Net income attributable to Apco                       23,453  22,756
Per share                                             0.80    0.77
                                                                  

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
following:

  *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
    earthquakes;
  *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.

Contact:

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