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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As of September&amp;#160;30, 2010, Apache&amp;#8217;s significant accounting policies are consistent with those
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The preparation of financial statements in conformity with U.S. GAAP requires management to
   make estimates and assumptions that affect the reported amounts of assets and liabilities and
   disclosure of contingent assets and liabilities at the date of the financial statements and the
   reported amounts of revenues and expenses during the reporting period. Significant estimates with
   regard to these financial statements include the estimate of proved oil and gas reserves and
   related present value estimates of future net cash flow therefrom, asset retirement obligations and
   income taxes. Actual results could differ from those estimates.
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 -Publisher AICPA
 -Name Accounting Principles Board Opinion (APB)
 -Number 22
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