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Apache reports seven discoveries across Egypt' s Western Desert

HOUSTON -- Apache has reported seven oil and gas discoveries that highlight the geologic and geographic diversity across the company' s 9.7 million gross acres in Egypt' s Western Desert.

One discovery – the Riviera SW-1X on the southern flank of the Abu Gharadig Basin – test-flowed 5,800 bopd and 2.8 MMcfd from a Lower Bahariya sand with 24 ft of net pay. Another – the Narmer-1X – is a stratigraphic trap that is separated from the Neilos oil field located five miles to the east.

"These seven discoveries are located in four different geologic basins and six different concessions," said Thomas M. Maher, Egypt Region vice president and general manager. "The Faghur Basin yielded four of the discoveries with one each in the Shushan, Matruh and Abu Gharadig basins. All seven discoveries have been tested and Riviera SW-1X is already producing. Our exploration and development program in Egypt continues apace, with an average of 27 drilling rigs operating during the second quarter. "

The Riviera SW-1X, located in the WD 30 Development Lease acquired in 2010, is 1.3 miles south of the Riviera field, which also produces from the Upper Bahariya and Abu Roash formations. The discovery extends the known southern limit of the play in the Abu Gharadig Basin. The well is currently online and producing at restricted rates of 2,000 barrels of oil per day while gas rates continue to be monitored. Drilling and completion costs for the well were $5 million. Apache has a 100 percent contractor interest in the WD 30 Development Lease.

The Narmer-1X and the Neilos field are elements of an emerging Paleozoic play pioneered in the Western Desert by Apache. The Narmer-1X, located in the Faghur Basin and the Khalda Offset Concession, encountered 85 feet of net pay in Paleozoic-aged  sandstone and test-flowed approximately 1,200 barrels of oil and 400 thousand cubic feet (Mcf) of gas per day with a trace of water. Although appraisal wells will be required to accurately map this new field, the stratigraphic trap is estimated to exceed 1,000 acres with analogous prospects mapped nearby. With its proximity to existing infrastructure, the well is expected to be put on production quickly following development lease approval.Drilling costs for the well were $3.1 million, with completion pending. Apache has a 100 percent contractor interest in the Khalda Offset Concession.

The Jade N-2X, located 1.5 miles to the northeast of the Jade field in the western Matruh Basin within the Matruh Development Lease, encountered 35 feet of net pay in the Cretaceous-aged Alam El Buieb 3G sandstone. The zone was perforated and tested over a 74-foot interval, producing up to 146 barrels of condensate and 11.2 MMcf of gas per day at original reservoir pressure. Apache has a 100 percent contractor interest in the Matruh Concession. Drilling and completion costs for the well were $2.6 million.

The WKAL-T-1X, located 3.5 miles due south of the nearest production in the Tell field within the West Kalabsha Concession in the Faghur Basin, logged a total of 32 feet of net pay in the Safa formation. The well was tested in one of three zones of Upper Safa sandstone that flowed 2,900 barrels of oil and 2.8 MMcf of gas per day. Drilling and completion costs for the well were $5 million.

The Falak NW-1X, drilled in the Khalda Development Lease on the northern flanks of the Shushan Basin, logged 114 feet of stacked net pay in the Safa sandstone. Apache tested 1,200 barrels of oil and 6.1 MMcf of gas per day from multiple Safa sands. A completion string is currently being run in the well. Falak NW-1X is three miles south of the Shams field and two miles southeast of the recent Amoun NE-1X discovery. Drilling costs for the Falak NW-1X were $3.5 million with $1 million estimated for completion.



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