HOUSTON, Oct. 30, 2015 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) today announced significant
discoveries on two exploration wells in the Beryl area of the U.K.
North Sea. The company also drilled two significant
development wells in the Beryl area, from which no reserves have
been previously booked. Additionally, Apache announced a
large discovery at its Seagull prospect, which lies approximately
50 miles south of the company's Forties Field, the largest oil
field in the U.K. North Sea.
The K and Corona wells are the first exploratory prospects
drilled by Apache in the Beryl area. Each discovery proves a
separate geologic concept that helps to de-risk additional drilling
locations. Apache estimates the K and Corona discoveries, combined
with the success at Seagull, represent likely net recoverable
reserves of 50 million to more than 70 million barrels of oil
equivalent (MMboe). Future appraisal drilling will enable the
company to further define the upside potential beyond 70 MMboe.
Apache's proved reserves in the North Sea at yearend 2014 were
approximately 140 MMboe.
"Apache's exploration program in the high-potential Beryl area
is off to an exceptional start. The success of our first two
exploration wells at Beryl, combined with the Seagull discovery,
could increase our total North Sea proved reserve base by more than
50 percent. Importantly, results obtained from the wells
announced today emphasize the quality of our seismic surveys and
the accuracy of our geologic model in the Beryl area," Thomas E. Voytovich, Apache's executive vice
president – International and Offshore and E&P Technology,
said. "Our large discovery at Seagull will likely have a longer
investment time-horizon as it may require dedicated production
facilities, but it is expected to have a very meaningful impact on
Apache's medium- and long-term production in the region. We look
forward to discussing the economics and details of these
discoveries, along with a review of our extensive North Sea
prospect inventory during our North Sea Region webcast Nov. 17."
Details of the five discovery wells include:
- K Discovery – After the initial discovery with the
9/19B-18 well in June 2015, Apache
successfully drilled two sidetracks into adjacent fault blocks in
the Beryl area. In total, this discovery includes more than
1,500 feet of high-quality, oil-bearing sands within the Beryl,
Linnhe, Nansen and Cormorant formations, across three distinct
fault blocks. Apache is the operator of this discovery with a 55
percent WI, and partner Shell has the remaining 45 percent.
- Corona Discovery - The 9/18a-39A Corona exploration
well, also located in the Beryl area, tested Apache's first
Tertiary-aged injectite prospect. The well was drilled to a true
total vertical depth subsea (TVDSS) of 6,411 feet and logged 225
feet total vertical depth (TVD) net pay in excellent
reservoir-quality sandstone. Apache has a 100 percent working
interest (WI) in this discovery.
- Beryl ACN Development Well – Drilled from the Beryl
Alpha platform, the ACN development well encountered 131 feet TVD
net pay in the Nansen and 40 feet TVD net pay in the Eiriksson
formations. The well was successfully completed in the Nansen and
came online Oct. 8, 2015 at a
test rate of 11,194 barrels of oil per day (Bpd) and 30.4 million
cubic feet of natural gas per day (MMcfd). Apache holds a 60.55
percent WI in the well, and partner Shell has the remaining 39.45
percent.
- Nevis Central L4S Development Well – The L4S pilot well,
also located in the Beryl area, was drilled to a TVDSS of 9,298
feet and logged 114 feet TVD net pay in the Triassic Lewis
formation. The pilot was followed by a high-angle producer that
yielded a 30-day initial production (IP) rate of 45 MMcfd and 2,166
Bpd. The well has been producing since early July 2015. Apache has a 60.55 percent WI in the
well, and partner Shell has the remaining 39.45 percent.
- Seagull Discovery – An appraisal well was drilled about
50 miles (80 kilometers) south of the Forties complex in Block
22/29c in the Seagull Discovery and confirmed 672 feet of net oil
pay over a 1,092-foot column in Triassic-age sands. The well was
flow tested with a facility-constrained rate of 8,700 Bpd and 16
MMcfd with a very low pressure drawdown. Further appraisal
work will continue following the recent acquisition of a
multi-azimuth 3-D survey. Apache will assume operatorship of
this license from Talisman Sinopec Energy UK Limited later this
year subject to necessary approvals. Apache has a 35 percent
WI. Partners in the well include Talisman Sinopec Energy UK Limited
with 50 percent WI and JAPEX UK E&P Ltd. with 15 percent WI.
"The North Sea team has generated tremendous value in 2015 for
Apache shareholders, despite a significant year-over-year reduction
in capital spending. The discoveries we announced today, coupled
with the North Sea's substantial inventory of development
locations, provide low-risk investment optionality at very
attractive rates of return," John J.
Christmann, IV, Apache's chief executive officer and
president, said. "Our objective is to achieve a balanced investment
profile of short-, medium- and long-cycle projects across our
global portfolio. The North Sea discoveries we announced
today are attractive across the full spectrum of those investment
time horizons. These discoveries further reinforce our
confidence that our North Sea business has the ability to sustain
production volumes, extend the Forties and Beryl productive lives
out beyond 2030 and consistently provide significant free cash flow
back to the corporation."
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt and the United Kingdom. Apache posts announcements,
operational updates, investor information and 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,"
"guidance" 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 planned drilling activity, future
production, and exploration prospects in the United Kingdom sector of the North Sea. 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.
Cautionary Note to Investors: The United States Securities and
Exchange Commission ("SEC") permits oil and gas companies, in their
filings with the SEC, to disclose only proved, probable, and
possible reserves that meet the SEC's definitions for such terms.
Apache may use certain terms in this earnings release operations
supplement, such as "resources," "potential resources," "resource
potential," "estimated net reserves," "recoverable reserves," and
other similar terms that the SEC guidelines strictly prohibit
Apache from including in filings with the SEC. Such terms do not
take into account the certainty of resource recovery, which is
contingent on exploration success, technical improvements in
drilling access, commerciality and other factors, and are therefore
not indicative of expected future resource recovery and should not
be relied upon. Investors are urged to consider carefully the
disclosure in Apache's Annual Report on Form 10-K for the fiscal
year ended December 31, 2014,
available from Apache at www.apachecorp.com or by writing Apache
at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate
Secretary). You can also obtain this report from the SEC by calling
1-800-SEC-0330 or from the SEC's website at www.sec.gov.
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