Apache Hits in Egypt

Apache Corporation announced that its JG-1X discovery well in Egypt's Northeast Abu Gharadig Concession tested 4,190 barrels of oil and 5 million cubic feet (MMcf) of natural gas per day.

The Western Desert discovery was tested on a 48/64-inch choke with 1,171 pounds per square inch of flowing wellhead pressure. It was perforated between 10,497 feet and 10,517 feet in the Khatatba Sandstone. The JG-1X is the first Jurassic sandstone oil discovery in this area of Abu Gharadig Basin. Apache and Shell Egypt, the operator, have identified several potential offset locations.

The JG-1X discovery is expected to be put on production quickly because field facilities operated by a Shell joint venture are nearby. The discovery well is less than two miles from existing oil pipelines. Early production options are being investigated.

"This prolific area of the Abu Gharadig Basin contains four of the larger fields in the Western Desert, each with reserves in the range of 100 million barrels of oil equivalent," said Rodney J. Eichler, Apache's regional vice president and general manager in Egypt.

Apache is the largest producer of liquid hydrocarbons in the Western Desert, with operated production of approximately 79,000 barrels per day, and the second-largest producer of natural gas, with operated production of approximately 190 MMcf per day.

Apache has a 48 percent contractor interest in the 2.4-million-acre Northeast Abu Gharadig Concession. Shell Egypt has a 52 percent contractor interest.