Apache Strikes Again: Finds More O&G in Egypt's Western Desert

Apache reported two new Jurassic oil and gas field discoveries in the Faghur Basin play in the extreme southwest part of Egypt's Western Desert producing complex and the first discovery in the North Tarek Concession along the Mediterranean coast.

"Development of the Faghur Basin play and the North Tarek Concession, along with continued drilling in Matruh and other established fields, will continue to add to Apache's Khalda-area gross liquid hydrocarbon production, currently about 102,000 barrels per day," said Rod Eichler, Apache's co-chief operating officer and president - International. "These wells also highlight the resource to be found in the Alam El Buieb (AEB) formations, which contribute about 30 percent of Khalda-area oil output."

Phiops-1x is a new oil field discovery located in the South Umbarka concession about 2.5 miles (4 km) northwest of Apache's Kalabsha field. The well encountered 173 feet of oil pay in the Cretaceous (AEB-3) and 103 feet in the Jurassic Safa formations. The discovery flow-tested 2,278 barrels of oil and 5 million cubic feet (MMcf) of gas per day from the Safa formation.

The well currently is producing 1,619 barrels of oil and 4.1 MMcf of gas per day. Apache recently started drilling two appraisal wells - Phiops-2 and Phiops-5 - to better define both the AEB and Safa potential. Apache has a 100-percent contractor interest in the South Umbarka concession.

The WKAL-A-1x discovery, located five miles (8.3 km) west of Phiops-1x in the West Kalabsha Concession, was drilled to test closures at three levels in the AEB and Safa formations. The well logged 202 feet of pay in the Cretaceous AEB-2 and AEB-3 formations and 17 feet of pay in the Jurassic Zahra formation. The Zahra tested at 770 barrels of oil (44 API) and 4 MMcf of gas per day. A 28-foot perforated interval in the AEB-3G formation tested at 2,906 barrels of condensate (52 API) and 16 MMcf of gas per day. Apache plans to apply for a development lease. Apache has a 100-percent contractor interest in the West Kalabsha concession.

"Taken together, the new-field discoveries in the Faghur Basin highlight significant potential for new oil and gas reserves and production following Apache's WKAL-C-1X Jurassic discovery drilled last year," Eichler said. "Apache plans to continue an exploration, appraisal and development program in 2009 to capitalize on these successes. Two new three-dimensional seismic surveys will commence this summer."

The NTRK-C-1X, located 2.7 miles from Apache's Tarek gas plant and six miles from the Matruh-5, is Apache's first new field discovery in the North Tarek Concession along the Mediterranean coast. A total of 48 feet of AEB-6 pay was logged and tested at the rate of 3,489 barrels of oil (44 API) and 5 MMcf of gas per day. The nearest AEB-6 production is from Flanders Field in Matruh Concession 6 miles (10 km) to the northwest. The test result helps high-grade other prospects on nearby Apache leasehold. Apache has a 100-percent contractor interest in the North Tarek concession.

At Matruh Field, six miles west of NTRK-C-1X, the Matruh-5 was recompleted in the AEB-6 formation. An 18-foot section was perforated and tested at 2,362 barrels of oil (42 API) and 1 MMcf of gas per day. Matruh Field has produced over 3 million barrels of oil and 36 billion cubic feet of gas from the deeper Jurassic Safa Formation since 2002. Apache has a 100-percent contractor interest in the Matruh Concession.
 

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