Apache Corporation (NYSE:APA) ( NASDAQ: APA) today announced the West Kalabsha I-1X discovery in the Faghur Basin of Egypt’s Western desert. The well, located approximately 10 miles southwest of Apache’s Phiops Field, test-flowed at a rate of 4,554 barrels of oil and 10.1 million cubic feet (MMcf) of natural gas per day from 105 feet of net pay in the Jurassic Safa formation.
The West Kalabsha I-1X is the most recent in a series of oil discoveries in the Faghur Basin, the result of Apache’s oil-focused exploration program. Currently under way is an expansion of processing and transportation infrastructure projects that will enable production capacity in the Faghur to rise from 8,100 barrels per day to 40,000 barrels per day in late 2010.
“Apache previously established production in the Safa formation at West Kalabsha-C and Phiops in the Faghur Basin,” said Tom Voytovich, vice president of Apache’s Egypt Region. “This most recent discovery solidifies the Jurassic Safa as a primary objective in the basin. The well, on a structure identified by 3-D seismic, encountered pay in over 200 feet of total sand, demonstrating the potential size of Safa accumulations in the Faghur. This discovery certainly adds a new dimension to our exploration focus.
“West Kalabsha is proving to be a fertile hunting ground; with the ongoing infrastructure expansion, the time from concept to actual production should be shortened dramatically,” Voytovich said. “We have two new 3-D seismic surveys completed in the basin, and we are about to begin acquisition on our largest survey of the year to the west, along the trend established by recent discoveries, in an area where no previous 3-D data exists but regional 2-D data indicates promising geological features.”
Apache owns a 100-percent contractor interest in the West Kalabsha concession and has plans to drill four more exploratory wells targeting the Alam el Bueib (AEB) and Safa formations in the Faghur basin during 2010. Apache plans to drill an appraisal test two miles southwest of the latest discovery before full development plans are formulated.
Increased oil output from the Faghur Basin is forecast to be one of the key drivers of Apache’s 2010 production growth – along with the Van Gogh and Pyrenees oil field developments in Western Australia – and reinforcing Apache’s strategic commodity balance. Apache has projected 5 to 10 percent production growth in 2010. Liquid hydrocarbons accounted for 50 percent of Apache’s 2009 global production and 72 percent of revenues.
Apache is an independent oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates and investor information, in addition to copies of all recent press releases, on its Web site, www.apachecorp.com.
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 most recently filed Annual Report on Form 10-K, on our Web site and in our other public filings and press releases. 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.
APA-EG
Source: Apache Corporation
