HOUSTON, March 31, 2015 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) today reported strong appraisal-
and development-drilling results from Egypt following the previously announced
discovery of two new oil fields in the Western Desert. The initial
discoveries were announced with the fourth quarter 2014 results on
Feb. 12, 2015. Development leases
were approved by the Egyptian General Petroleum Corporation (EGPC)
and Ministry of Petroleum in record time, taking only 13 days from
submission of the development plan for Berenice, and only six days
for Ptah.
The Berenice and Ptah fields are located in the Faghur Basin
along the same fault trend in the Khalda Offset Concession.
Exploration and drilling efforts are targeting rock from both the
Mesozoic and deeper Paleozoic eras. These targets are a PRIMARY
focus for Apache Egypt and have proven successful in this area with
oil and gas discoveries made at the nearby Shu-1X, Apries-1X,
Bat-1X and Geb-1X wells, although Ptah is the largest new field
found in the play thus far.
Five wells, including the discovery wells, have been completed
to date by Khalda Petroleum Company, Apache's joint-venture company
with EGPC. All five wells are producing without the need for
fracture stimulation at a combined rate of more than 13,600 barrels
of oil per day (bbl/d) with first production starting in
November 2014. The wells have
produced approximately 1 million barrels of oil to date. Apache has
invested $14 million to install
production facilities and plans to invest another $35 million to handle the forecasted production
increase.
Apache currently has three rigs operating in these two fields to
drill development wells. All oil is being shipped via pipeline to
nearby Khalda-operated processing facilities. Apache plans to
continue increasing production from the two fields to 17,500 bbl/d
by mid-year.
Berenice Field
The Berenice field started producing light oil from the
Cretaceous-aged Alam El Buieb formations (AEB-3D and AEB-3E) in
November 2014. Three wells are
currently producing more than 9,500 bbl/d from a 700-acre drainage
area with pay zones that range between 38 feet and 142 feet. Apache
has a drilling rig dedicated to the field, which is currently
drilling the Berenice-4 and will then continue on to the
Berenice-5. The Berenice-4 contains a 142-foot oil pay zone in the
target AEB-3D/-3E sandstones with excellent reservoir quality. Up
to four additional wells are planned during the first phase of
development. Drilling depth is approximately 12,000 feet with
completed-well costs expected to average approximately $3 million for each of the development wells.
Ptah Field
The Ptah field started producing light oil from the
Paleozoic-aged Shiffah Formation in December
2014. This field also has substantial target zones logged in
the AEB-3D/-3E formations that have yet to be tested. In the
Shiffah, the field discovery well (Ptah-1X) is currently producing
2,350 bbl/d and a second well (Ptah-3X) started production in
March 2015 at a rate of 2,000 bbl/d.
Shiffah pay zones have averaged 130 feet while the AEB-3D/-3E
formations yet to be completed have logged an average net oil pay
section of 65 feet.
Further appraisal drilling and AEB-3D/-3E production testing
will be conducted with the Ptah-4X and Ptah-6 to further define the
field size and reserves. Drilling depth to the deeper Shiffah is
approximately 13,800 feet, while the AEB-3D/-3E targets average a
depth of 11,000 feet. Completed-well costs are expected to average
around $3.7 million for Shiffah wells
and $2.5 million for the AEB-3D/-3E
wells.
"These recent discoveries demonstrate the inventory and upside
potential Apache enjoys in Egypt,"
said Apache Egypt Country Manager Tom
Maher. "By applying new technologies and advanced 3-D
imaging by an integrated team, we have gained a better
understanding of the Western Desert petroleum system. This has
allowed us to uncover new, deeper targets in areas where we have
been operating for years. These recent discoveries, coupled with
several other exploration activities currently underway, highlight
the significant opportunity we have for greater development of our
6.7 million gross acres."
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt, the United Kingdom and Australia. Apache posts announcements,
operational updates, investor information and copies of all press
releases on its website, www.apachecorp.com, and on its Media and
Investor Center mobile application, which is available for free
download from the Apple App Store and the Google Play Store.
Forward-looking statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as "anticipates,"
"intends," "plans," "seeks," "believes," "estimates," "expects" and
similar references to future periods. These statements include, but
are not limited to, statements about future plans, expectations and
objectives for Apache's operations, including statements about our
exploration and drilling plans and production expectations in
Egypt. While forward-looking
statements are based on assumptions and analyses made by us that we
believe to be reasonable under the circumstances, whether actual
results and developments will meet our expectations and predictions
depend on a number of risks and uncertainties which could cause our
actual results, performance, and financial condition to differ
materially from our expectations. See "Risk Factors" in our 2014
Form 10-K filed with the Securities and Exchange Commission for a
discussion of risk factors that affect our business. Any
forward-looking statement made by us in this news release speaks
only as of the date on which it is made. Factors or events that
could cause our actual results to differ may emerge from time to
time, and it is not possible for us to predict all of them. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future
development or otherwise, except as may be required by law.
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