HOUSTON, Dec. 13 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE:APA) today announced that the first significant well drilled from its 700-square-mile (1,800-square-kilometer), three-dimensional seismic survey in Argentina's Tierra del Fuego is producing 1,635 barrels of oil and 1.3 million cubic feet (MMcf) of gas per day from the Lower Cretaceous Springhill sandstone.
"Prior to Apache becoming operator of this 714,000-acre block in Tierra del Fuego, very little 3-D seismic had been acquired," said G. Steven Farris, Apache's president and chief executive officer. "With 40 percent of the survey shot, and newly processed data arriving every day, we have identified more than 30 exploratory, field extension and development locations."
The new well, the Seccion Banos-2004, had the highest initial production rate of any well drilled in four decades of oil and gas activity on the Tierra del Fuego concession. The SB-2004, which was drilled to 5,544 feet, confirmed the productivity of a sparsely drilled 20-square-mile (50-km2) area between three 40-year-old fields -- Canadon Piedras, Cabo Nombre and Bajo Grande. Apache has commenced drilling the first of six potential offsets that have been identified to date.
The Seccion Banos success follows Apache's development of the previously unexploited discovery at Cabo Nombre Sur, located offshore 4.2 miles (7 km) to the south of the latest well. Two wells -- the CNS-2005 and CNS-2006 -- currently are producing a total of 11.5 MMcf of gas and 53 barrels of oil per day.
Apache is the operator of the TDF concession with a 70 percent working interest; Repsol YPF owns the remaining interest. Apache is the largest acreage holder on the island of Tierra del Fuego with almost 2 million gross acres -- 714,000 acres on the Argentine side and two recently awarded exploration blocks comprising 1.2 million acres on the Chilean side of the island. Apache's current net production on the island is 5,226 barrels of liquid hydrocarbons and 122 MMcf of gas per day.
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.
This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our 2006 Form 10-K and on our Web site. There is no assurance that Apache's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements. We assume no duty to update these statements as of any future date.
Source: Apache Corporation