Apache Makes Third Deepwater Egyptian Discovery

Apache has made its third consecutive deepwater natural gas discovery in the offshore portion of its 2.3-million-acre West Mediterranean Concession in Egypt. It is Apache's ninth discovery in Egypt this year.

The El Max-1X well is in 3,100 feet of water approximately 5.5 miles south of Apache's first deepwater discovery, the Abu Sir-1X (Blue prospect), which was completed in May.

The El Max potential pay interval is similar to both the Abu Sir and the subsequent Al Bahig discovery, but with a larger interpreted gas column of over 500 feet. Abu Sir test-flowed 17.4 million cubic feet of gas per day from 104 feet of perforations in the least prospective section of a 311-foot gross column. Al Bahig had a 247-foot gross potential gas column.

"The El Max discovery has the largest gross potential pay Apache has yet encountered in our West Med Concession," said Apache President and CEO G. Steven Farris. "We're now comfortable with our ability to operate in deep water, having hit on all three of our deepwater exploration wells drilled thus far, and are well on our way toward our goal of establishing at least 3 trillion cubic feet of gross natural gas reserves on the deepwater part of the concession. West Med has the highest reserve potential of any property in Apache's worldwide portfolio."

Apache is the operator, with a 55 percent contractor interest in the deepwater portion of the concession. RWE-DEA has a 28.333 percent interest and BP holds the remaining 16.667 percent. Farris said Apache plans to drill two more deepwater structures there before the year is out.