Apache Logs 2nd Success on Abu Sir Field Offshore Egypt

Apache Corporation announced the successful appraisal of its deepwater Abu Sir field discovery in the company's West Mediterranean Concession.

The Abu Sir-2X, in water depth of 3,373 feet, was drilled to a total depth of 13,162 feet and penetrated hydrocarbon-bearing intervals in both Pliocene- and Miocene-aged sands. It is the fifth well in Apache's deepwater Egyptian program and the first appraisal well after four successful exploratory tests.

The shallower pay interval is stratigraphically equivalent to the Pliocene pay sands in the Abu Sir-1X discovery well. Logs and pressure data identified a 134-foot column between 6,680 feet and 6,814 feet with 84 net feet of gas pay.

"The positive results of the Abu Sir-2X confirm our understanding of the field and exceed our expectations," said G. Steven Farris, Apache's chief executive officer, president and chief operating officer. "The Pliocene interval includes 55 feet of thick blocky sand, underscoring excellent potential for high rates of deliverability." After penetrating 250 feet of Miocene salt, gas shows with no apparent water were encountered in Miocene sands between 12,250 feet and 13,162 feet. The shows represent the first sub-salt hydrocarbons encountered in the Nile Delta deep water. Drilling logs indicated the presence of approximately 100 net feet of possible pay. The well was drilled 1,462 feet below the original objective of 11,600 feet. It encountered a "gas kick" (highly pressured sands) at total depth. Due to reduced hole size and rig limitations, Apache abandoned the lower portion of the well, preserving the upper Pliocene section for future production.

Apache intends to test the potential of the deeper Miocene sands either in this well or at a new location in conjunction with the future development of the Pliocene structure. Apache is the operator of the West Mediterranean Concession with a 55 percent contractor interest. RWE Dea has a 35 percent interest and BP Egypt Company holds the remaining 10 percent.