HOUSTON, Sept. 19, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported results from two new wells in Egypt's Western Desert that signal continued drilling success in the Faghur Basin and on concessions acquired in 2010.
The Tayim South 1-X well is the latest in a series of discoveries in the Faghur Basin based on Apache's interpretation of recently acquired 3-D seismic surveys across several of its concession areas, including the West Kalabsha Concession, where Apache owns a 100% contractor interest.
"The Tayim South discovery is located along a prominent east-west fault trend that stretches nearly 25 miles, all within Apache-operated concession boundaries, and includes productive intervals in the AEB, Safa and Paleozoic formations," said Tom Voytovich, vice president of Apache's Egypt Region. "We have drilled 13 exploratory tests along this trend during 2011, 11 of which were discoveries. We are planning five additional tests before year-end."
Tayim South 1-X is the highest-oil-rate completion Apache has tested since it began operating in the Western Desert in 1996.
"The AG-90 well was drilled as part of an aggressive campaign to develop oil reserves in the Abu Roash and Bahariya formations in the Abu Gharadig field," said Voytovich.
The latest well encountered 189 feet of pay in six separate zones. It was completed with 18 feet of perforations from a total 84 net feet of oil pay in the Lower Bahariya and is currently producing 5,200 barrels of oil and 5 MMcf of gas per day.
Apache has drilled 11 successful wells in the Abu Gharadig Field since acquiring the properties, with oil production rising 20 percent to 24,000 barrels per day, and gas production increasing 70 percent to 60 MMcf per day. Existing facilities allow wells to be brought on production rapidly, although pipeline and mechanical issues have restricted condensate production.
"We believe there is a good opportunity to leverage existing processing and transportation infrastructure to maximize efficiency at the Abu Gharadig Field complex," Voytovich said. "These new wells and others across Apache's concession holdings will help meet Egypt's current demand for energy and add value for Apache and our Egyptian partners."
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. From time to time, Apache posts announcements, updates and investor information, in addition to copies of all press releases, on its website, www.apachecorp.com.
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 include statements about planned drilling activity, future production, and exploration prospects in the Faghur Basin and Abu Gharadig Field 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 2010 Form 10-K as amended by Amendment No. 1 to our annual report on Form 10-K/A 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.
SOURCE Apache Corporation