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Apache makes two new oil discoveries in Egypt' s Faghur Basin

Apache reported two new oil discoveries and a significant appraisal in the Faghur Basin in the far southwest of Egypt' s Western Desert oil and gas province.

The Pepi-1X, drilled approximately 6 miles (10 km) south of Apache' s Phiops Field, test-flowed at 4,216 barrels of oil and 4.9 million cubic feet (MMcf) of gas per day from a 68-foot gross interval in the Lower Safa formation.

The Buchis South-1X, also about 6 miles south of Phiops, logged 131 feet of pay in several Cretaceous zones, including the Kharita and Alam El Buieb (AEB) sands. A test in one AEB zone flowed 1,647 barrels of oil per day.

The Faghur-8X step-out appraisal extended the Faghur Field by 1.6 miles (2.7 km) to the east. The well logged 79 feet of stacked Cretaceous pay in multiple AEB sands. A well test in one AEB sand flowed at an average rate of 2,992 barrels per day.

The Pepi and Buchis discoveries set up several additional exploration drilling opportunities on trend, and the Faghur-8X significantly increased the size of the field and set up a number of follow-up development drilling opportunities.

Current gross production from the Faghur Basin is approximately 24,000 barrels of oil per day. Additional infrastructure projects are expected to bring processing and transportation capacity from the basin to 40,000 barrels of oil per day before year-end 2010. In the second quarter, Apache' s gross production in Egypt totaled approximately 181,000 barrels of oil and 789 MMcf of gas per day; Apache' s net production during the period totaled approximately 98,500 barrels of oil and 388 MMcf of gas per day.

Apache has drilled five discoveries among eight exploration wells in the Faghur Basin during 2010. Drilling is under way on two wells - WKAL I-3X and Nebra-1X - and five additional exploration wells are planned.

Apache continues to evaluate 3-D seismic surveys - including a recently completed 155-square-mile (400 km2) survey - to identify additional exploration opportunities in the basin, which extends across portions of several Apache-operated concessions.

"The Faghur Basin continues to be a successful focus area for Apache, with AEB and Safa reservoirs that have proven to be prolific oil and gas producers. These recent discoveries support the multi-pay potential of this oil-prone area of the Western Desert," said Tom Voytovich, vice president of Apache' s Egypt Region.

"These discoveries also provide additional evidence of the exploration potential on Apache acreage in Egypt and the benefits of working in stacked-pay areas," he said.

 

08/18/2010

 

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