SUBSEQUENT EVENT

6 Months Ended

Jun. 30, 2013

6.	SUBSEQUENT EVENT

On July 18, 2013, Apache, the Partnership’s Managing Partner, announced it had entered into a definitive agreement to sell its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC (Fieldwood), an affiliate of Riverstone Holdings. The effective date of the sale is July 1, 2013, and the transaction is expected to close on September 30, 2013, subject to customary regulatory approvals and other closing conditions.

As Managing Partner of the Partnership, Apache has an indirect ownership interest in the Partnership’s properties. In its individual capacity, Apache also owns a direct interest in certain Partnership properties. In connection with the proposed sale to Fieldwood, Apache will sell its direct interests in the Partnership’s properties, while retaining its indirect interests in those properties in its capacity as Managing Partner of the Partnership. Pending closing of the Fieldwood transaction, Apache will continue to operate South Timbalier 295, Ship Shoal 258/259 and Matagorda 681/682; however, Fieldwood will operate these properties after close. The North Padre Island 969/976 field, in which the Partnership owns an interest, is and will continue to be operated by a third-party joint interest owner.