Oil and gas exploration company, Apache Corporation, announced Wednesday it had discovered a potentially significant amount of oil in Egypt, saying plans were afoot to drill more wells in the area to ascertain the full potential of the site.
The Houtson-based company said the Heqet-2 appraisal well in Egypt’s Greater Khalda area was producing approximately 2,000 barrels of oil daily and this could be increased after the new discovery.
“Using improvements in fracture stimulation technology, we have turned a marginally economic play into a potentially significant oil accumulation,” Apache Chief Executive Steven Farris said in a news release.
Fracturing is a process used to stimulate production, in which a fluid under extremely high pressure is pumped into a well in order to fracture the formation and release natural gas or oil that has been trapped in rocks.
The company stated its intention to drill at least four more wells in the area.
Shares of Apache rose by US$ 6.75, representing 6.3 per cent, to US$ 114.38 in early trading on the New York Stock Exchange, out-performing a 3 per cent increase in the American Stock Exchange index of natural gas companies. Panapress .