Apache Discovers New Field Pay at Tanzanite

Apache reports that the Tanzanite-2 well on Egypt's West Mediterranean Onshore Concession flowed 2,846 barrels of oil and 640 thousand cubic feet (Mcf) of gas per day in the first test of the Cretaceous-age Alamein Dolomite formation in the Tanzanite Field.

The Tanzanite-2, located approximately 2,000 feet northeast of the Tanzanite 1X discovery, was drilled to a total depth of 9,075 feet. The test was conducted on the top 12 feet of the targeted Alamein Dolomite formation on a 1-inch choke with 205 pounds per square inch (psi) of flowing wellhead pressure. An additional 22 feet of net pay was logged in the overlying Dahab formation.

The Tanzanite-2 well was connected to the North Alamein field production facilities located 1.6 miles to the southeast. The well is producing 2,782 barrels of oil and 640 Mcf of gas per day on a 1-inch choke and 205 psi of wellhead pressure. The North Alamein field, discovered by Apache in 1998, has produced 2.2 million barrels of oil from the Alamein Dolomite and Dahab formations.

The Tanzanite-1X, drilled in April, logged over 200 feet of net pay from multiple Cretaceous horizons between 8,670 and 11,560 feet. Separate tests from a total of 33 feet of pay in two AEB 3A zones in the lower Cretaceous from 10,788 feet to 10,801 feet and from 10,924 feet to 10,934 feet flowed at a combined rate of 10,927 barrels of oil and 23.8 million cubic feet (MMcf) of gas.

The well currently is producing 1,050 barrels of oil and 2 MMcf of gas on a 28/64-inch choke from the middle interval of the three AEB 3A pay zones.

In mid-August, Apache plans to spud the Tanzanite-3 well to accelerate AEB oil production up-dip to the Tanzanite-1X.

Apache has a 65 percent contractor interest in the onshore concession. RWE Dea AG has the remaining 35 percent contractor interest.

Apache also announced a new field oil discovery -- the El Diyur-2X -- on the Apache-operated El Diyur Concession 120 miles southwest of Cairo in Egypt's Western Desert. A test of the lower Bahariya formation flowed at a rate of 1,177 barrels of oil per day from 10 feet of perforations after fracture stimulation.

The El Diyur-2X, the first productive well on the concession, encountered oil pay in six stratigraphic intervals. Oil-bearing sandstones were logged primarily in the Bahariya formation and in the C, E and G members of the Abu Roash formation. In total, the well encountered 262 feet of logged oil pay.

Production will commence after approval of a development lease by Egypt's Ministry of Petroleum. Apache is operator of the El Diyur Concession and has 46.5 percent contractor interest. Sipetrol holds a 41 percent interest, and IPR holds the remaining 12.5 percent interest.


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