Apache's Recent Gas And Condensate Discoveries Highlight Prolific
Opportunities In Egypt's Western Desert
HOUSTON, May 6, 2014
HOUSTON, May 6, 2014 /PRNewswire/ --Apache Corporation (NYSE, Nasdaq: APA)
said today two recent hydrocarbon discoveries illustrate the continuing
reserve upside to be found across the company's 6.8 million gross acres in
Egypt's Western Desert.
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Apache can be found at www.apachecorp.com.
oThe Herunefer-1X discovery, located in the Matruh Basin in the eastern
portion of Khalda Offset Concession, encountered pay in the Alamein, Alam
El Buieb-6 (AEB), Masajid, Upper Safa and Lower Safa formations. Tests
from the Lower Safa and Upper Safa intervals flowed at a combined rate of
49 million cubic feet (MMcf) of gas and 7,700 barrels of condensate per
day. The estimated cost to drill and complete the well was $6 million.
oThe BAT-1X discovery, located in the northern Shushan Basin in the
Khepri-Sethos Development Lease, tested at a rate of 31 MMcf of gas and
390 barrels of condensate per day from a thick Paleozoic Shiffah sandstone
interval. The well, which was drilled to a total depth of 15,555 feet,
also encountered pay in the Cretaceous Upper Bahariya, Lower Bahariya,
Alamein, AEB-3C and AEB-3D formations. The estimated cost to drill and
complete the well was $5.25 million.
Both discoveries were drilled by Khalda Petroleum Company, an Apache-operated
joint venture with the Egyptian General Petroleum Company. Apache operates in
Egypt in partnership with Sinopec International Petroleum Exploration and
Production Corporation, which owns a one-third interest in Apache's Egypt oil
and gas business. The Apache-Sinopec partnership has a 100-percent contractor
interest in both fields.
"Herunefer-1X is the first of a series of exploration wells planned for the
Matruh Basin area this year," said Thomas M. Maher, Apache Egypt Region vice
president. "The basin remains an attractive focus area for exploration and
development and has been relatively under-explored. We have identified a
number of untested structural features, and trends have been mapped and
identified, with the potential for stacked targets and high-condensate-yield
Apache plans to construct a new, 7.5-mile (14 km) pipeline that will connect
to the existing transportation grid at the Jade area manifold. From Jade, the
production can be delivered to either the Salam or Tarek gas plants.
"BAT-1X is a potentially large discovery and the latest in Apache's pursuit of
stratigraphic traps and Paleozoic subcrop plays," Maher said. "Our
understanding of this play concept has evolved since the 2007 Hydra Field
discovery. We now recognize that these traps and subcrop plays were key
geologic elements in more than 20 previous Western Desert field discoveries."
Apache plans to drill several trend exploration wells in 2014 to evaluate and
appraise the BAT discovery. Alternatives for delivering the production to
market are under evaluation.
Additional production facilities were installed at the Hydra Field during the
first quarter. The field is currently producing 180 MMcf of gas and 8,600
barrels of condensate per day from six wells. One additional well was recently
completed and is being connected to production facilities.
Apache Corporation is an oil and gas exploration and production company with
operations in the United States, Canada, Egypt, the United Kingdom and
Australia. Apache posts announcements, operational updates, investor
information and copies of all 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
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 statements include,
but are not limited to, statements about future plans, expectations, and
objectives for Apache's operations, including statements about drilling plans
and production expectations 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 2013 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.
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SOURCE Apache Corporation
Contact: Media: (713) 296-6100, Patrick Cassidy, (713) 296-7276, Bill Mintz,
(713) 296-6662, Bob Dye, Investor: (281) 302-2286, Castlen Kennedy,
Christopher Cortez, Alicia Reis
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