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To: Think4Yourself who wrote (47031)	6/29/1999 3:58:00 PM
From: The Ox	Respond to of 95453

Apache China Files to Place XCL-China Into Involuntary Bankruptcy HOUSTON, June 29 /PRNewswire/ -- Apache Corporation (NYSE: APA) reported today that last Friday, its Apache China subsidiary filed a petition in U.S. Bankruptcy Court in Opelousas, Louisiana, to place XCL-China into involuntary bankruptcy for failure to pay more than $10 million owed to Apache China for project costs associated with the Zhao Dong Block in Bohai Bay, People's Republic of China. XCL-China has made no payment toward project costs since November 1998. Apache also said that allegations made against its Apache China subsidiary by XCL-China in arbitration filings last week are without merit and will be contested. In its first-quarter 10-Q filing with the Securities and Exchange Commission (SEC), XCL-China's parent, XCL Ltd., admitted that it "has not yet paid certain cash calls to Apache Corporation totaling approximately $7.3 million through May, 1999." XCL's 10-Q filing also admits that "the Company [XCL] presently has no source of significant revenue." XCL acknowledged in its most recent 10-K filing with the SEC that it has "insufficient funds to cover the Company's [XCL's] working capital requirements and capital expenditure obligations on the Zhao Dong and Zhang Dong Blocks during 1999." Apache said completion of the Zhao Dong project will require an additional investment of at least $150 million, and XCL-China lacks the capacity to finance its share of the project, much less assume operatorship. Apache China operates the Zhao Dong Block with a 50 percent interest in the 49 percent foreign contractor's share in the block. XCL-China also holds a 50 percent contractor interest. China National Oil and Gas Exploration and Development Corporation owns 51 percent of the block. Apache Corporation is an independent oil and gas company with operations in North America, Egypt, Western Australia, Poland and the People's Republic of China. Its common stock is traded on the New York and Chicago stock exchanges. SOURCE Apache Corporation CO: Apache Corporation; XCL-China; XCL Ltd. ST: Texas, Louisiana, China IN: OIL SU: BCY 06/29/99 15:50 EDT prnewswire.com