Apache Successfully Tests West Kalabsha Discovery

Apache reported that its WKAL-A-2X discovery tested 5,085 barrels of oil and 130 thousand cubic feet (Mcf) of gas per day -- the fourth successful exploration test in West Kalabsha Concession and the company's sixth discovery in the Faghur Basin play in Egypt's far Western Desert near the Libyan border.

The WKAL-A-2X discovery is located about one-half mile north of the Apache WKAL-A-1X discovery and five miles west of Apache's Phiops Field.

"With this latest discovery and other recent wells, we anticipate production from the Phiops-West Kalabsha area will double to 20,000 barrels per day as additional infrastructure is brought on line in the third quarter," said Rod Eichler, Apache's co-chief operating officer and president - International. "We estimate the discovered resource potential in the Phiops and Kalabsha areas exceeds 50 million barrels of oil equivalent.

"Several additional prospects have been identified, and we are acquiring more three-dimensional seismic in the Faghur Basin in order to extend this string of successes both to the northeast and southwest of this most recent discovery," he said. "The thickness of the sands and the stacked pay zones make this a very attractive area for further exploration."

Apache plans to drill seven additional exploration wells in the Faghur Basin play during 2010.

The latest well was designed to test Cretaceous-age Alam El Buieb (AEB) formations in a new fault block in a structurally higher position than the WKAL-A-1X well. The WKAL-A-2X well logged a total of 198 feet of pay in four AEB intervals including the 3G interval which was highly productive in a test of the WKAL-A-1X well. The latest well was perforated over the top 10 feet of a 29-foot section of the AEB-3C10 sand.

Apache has applied for a development lease with the Egyptian General Petroleum Company for both discoveries. Apache operates the West Kalabsha Concession and has a 100-percent contractor interest.



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