Apache Extends Field in Egypt's Khalda Concession

Apache reports that its Egyptian Qasr-5 appraisal well has successfully extended the Qasr field to the southwest, further confirming the overall seismic structure of the field. Qasr is in the Khalda Concession, which Apache operates with a 100 percent contractor interest.

The Qasr-5 appraisal well encountered a 494-foot gross sand column with 484 feet of net pay and a similar gas/water contact seen in the prior three Qasr wells. This is the third successful appraisal well that has encountered a net productive sand column greater than 450 feet.

Located approximately 3.5 miles southwest of the Qasr-1X field discovery well, the Qasr-5 tested at a rate of 53.5 million cubic feet (MMcf) of gas and 1,739 barrels (Bbls) of condensate per day on a one-and-one-half-inch choke with 1,800 pounds per square inch (psi) of flowing wellhead pressure. A total of 104 feet of sand at the bottom of the reservoir was perforated from 13,510 feet to 13,544 feet and from 13,410 feet to 13,480 feet.

"Qasr is certainly the largest onshore gas discovery in Apache's history and is one of the larger onshore hydrocarbon discoveries in the world in the last couple of years," said Apache CEO and President G. Steven Farris. The recent signing of a 25-year, 300-MMcf-per-day Gas Sales Agreement with the Egyptian General Petroleum Corporation provides Apache the capability of monetizing the Qasr gas reserves over the next several years. In addition, condensate recovery from the field is expected to be in the 40-million- to 50-million-barrel range.

Apache is currently drilling the Qasr-6 appraisal well in the far northwest extension of the field and plans to drill the Qasr-4 later this year to test the northeast extension of the field.