Apache Strikes Multiple Pay in Egypt's Faghur Basin

Apache reported five new oil discoveries in its Faghur Basin play in the far southwest of Egypt's Western Desert oil and gas province.

Apache also said that the AG-96 development well in the Abu Gharadig Concession tested 3,347 barrels of oil and 1 million cubic feet (MMcf) of natural gas per day from the Lower Bahariya formation. The well – drilled on acreage acquired from BP in late 2010 – is expected to lead to several additional wells before year end.

The Faghur Basin discoveries included:

  • West Kalabsha-I-4 logged 79 feet of net pay in the Jurassic Safa sands. In a test, the well flowed 7,150 barrels of oil per day and 11.4 million cubic feet (MMcf) of gas per day.
  • Faghur North-1X logged 25 feet of net pay in the Safa and Paleozoic Desouqy sands. Combined tests had a rate of 1,444 barrels of oil and 3.9 MMcf of gas per day.
  • Faghur South-1X logged 38 feet of net pay in Safa and Cretaceous AEB-6 sands. The Safa tested 2,768 barrels of oil and 4 MMcf of gas per day.
  • Huni-1X logged 27 feet of net pay in the AEB-3 sands. The well tested 970 barrels per day from the AEB-3E sand.
  • Neith North-1X logged 20 feet of net pay in the AEB-3 sands and 57 feet of net pay in the Safa sands. A Safa well test is planned this month.

"The Faghur Basin continues to be a successful focus area for Apache, with AEB, Safa, and now Paleozoic 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. "The Huni and Neith North discoveries continue Apache's recent exploration success in the eastern area of the Faghur Basin.

"These discoveries and production from the Tayim development lease approved during the revolution period illustrate the fact that Egypt's energy sector is continuing to move forward," Voytovich said. "Our recent drilling successes provide clear evidence of the exploration potential on Apache acreage in Egypt and the benefits of working in stacked-pay areas."

Apache recently drilled the first discovery on its westernmost exploration concession. The Siwa-D-1X drilled in the Siwa Concession pushed Jurassic and Cretaceous plays farther south and westward and will lead to follow-up exploration prospects. Apache expects to commence production from the well upon approval of a development plan later in 2011.

The Tayim West-1X discovery in the West Kalabsha Concession represents the first Paleozoic success found in a reservoir separate from the younger proven Jurassic and Cretaceous sands and opens up the area to further deep tests in upcoming wells. The discovery is currently on production.

Thus far in 2011, Apache has drilled eight new discoveries in 10 attempts in the Faghur Basin, and drilling is under way on three additional wells –Mandulis-1X, Neilos-1X and Faghur North-2X. Eight additional exploration wells are planned for the area this year.

Apache continues to evaluate 3-D seismic surveys to identify additional exploration opportunities, including a recently completed 400-square-mile (1,040 square kilometers) survey across the Apache-operated Sallum Concession on the west side of the basin, and a 656-square-mile (1,698 square kilometers) survey covering the eastern part of the basin underlying the Khalda Offset, South Umbarka and Shushan concessions.

Apache's current gross operated production in Egypt totals approximately 215,000 barrels of oil and 900 MMcf of gas per day, including 40,000 barrels of oil per day from the Faghur Basin.


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