Apache Well Producing 1,635 bbl/d, 1.3 MMcf/d in Tierra del Fuego

Apache Corporation's first significant well drilled from its 700-square-mile (1,800-square-kilometer), 3D seismic survey in Argentina's Tierra del Fuego is producing 1,635 barrels of oil and 1.3 MMcf/d of gas from the Lower Cretaceous Springhill sandstone.

"Prior to Apache becoming operator of this 714,000-acre block in Tierra del Fuego, very little 3-D seismic had been acquired," said G. Steven Farris, Apache's president and chief executive officer. "With 40 percent of the survey shot, and newly processed data arriving every day, we have identified more than 30 exploratory, field extension and development locations."

The new well, the Seccion Banos-2004, had the highest initial production rate of any well drilled in four decades of oil and gas activity on the Tierra del Fuego concession. The SB-2004, which was drilled to 5,544 feet, confirmed the productivity of a sparsely drilled 20-square-mile (50-km2) area between three 40-year-old fields – Canadon Piedras, Cabo Nombre and Bajo Grande. Apache has commenced drilling the first of six potential offsets that have been identified to date.

The Seccion Banos success follows Apache's development of the previously unexploited discovery at Cabo Nombre Sur, located offshore 4.2 miles (7 km) to the south of the latest well. Two wells – the CNS-2005 and CNS-2006 – currently are producing a total of 11.5 MMcf/d of gas and 53 bbl/d of oil.

Apache is the operator of the TDF concession with a 70 percent working interest; Repsol YPF owns the remaining interest. Apache is the largest acreage holder on the island of Tierra del Fuego with almost 2 million gross acres – 714,000 acres on the Argentine side and two recently awarded exploration blocks comprising 1.2 million acres on the Chilean side of the island. Apache's current net production on the island is 5,226 barrels of liquid hydrocarbons and 122 MMcf/d of gas.