Apache Reports Well Tests Results on the Jade-2x

Apache reported that its Jade-2x well in Egypt's Western Desert test-flowed 26.7 MMcf of natural gas and 1,325 b/d of condensate from the Jurassic Alam El Bueib-6 (AEB) formation.

The well was the first test of the AEB reservoirs in the Jade structure along the Matruh Ridge, confirming AEB resource potential identified on well logs in the Jade-1x discovery. The AEB formation is one of the most prolific oil-producing reservoirs in the greater Khalda Concession, accounting for almost 40% of the total crude oil produced from the concession to date -- more than 250 million barrels. Apache holds a 100% contractor interest in the quarter-million acre Matruh Concession.

The Jade-1x discovery logged 217 feet of AEB pay and 66 feet in the Jurassic Upper Safa formation in March 2007. The discovery was completed as a gas producer from the Upper Safa after a test of 25.6 MMcf of gas per day.

The Jade-2x, located approximately 1 mile northeast of the Jade-1x, logged 148 feet of AEB pay.

Also at Jade Field, the Jade-4 well has reached a total depth of 12,670 feet and logged 234 feet of net pay in the AEB formation. The Jade-4, a twin to the Jade-1x drilled to access the AEB sands identified in the discovery well, will be tested and completed following the Jade-2x test.

Apache recently re-completed the Imhotep-2 well to the AEB-6 zone, which tested at a rate of 4,082 barrels of condensate per day, and 3.3 MMcf of gas per day. The Imhotep Field is located about 17 miles east southeast of the Jade Field. It was established in February 2004 as a Jurassic Upper Safa gas field, with cumulative production to date of 33 billion cubic feet (bcf) of gas and 1.78 million barrels of associated condensate.

"The Matruh Area, including the Jade Ridge, is one of the high-potential exploration plays Apache has matured in our three growth areas of Australia, Canada and Egypt," said G. Steven Farris, Apache's president and CEO. "The successful test in the AEB formation confirms our belief in the significant hydrocarbon potential of the ridge.


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