Apache Makes Second Discovery in Exmouth Offshore Australia

Apache revealed that its Crosby-1 well has discovered oil in the Exmouth Sub-Basin offshore Western Australia. The well, drilled to a measured depth of 4,022 feet, encountered a 112-foot oil column in the Pyrenees member of the Cretaceous-age Barrow Group.

The discovery is located approximately 27 miles offshore in 646 feet of water about 1-1/4 miles east of Apache's Ravensworth oil discovery, which was announced in July. Apache has a 28.57 percent working interest in Crosby-1 well. BHP Petroleum is the operator with the remaining interest.

"Crosby gives us further confidence that we have opened a new oil play for Apache south of our existing Carnarvon Basin operations; moreover, it is potentially larger than Ravensworth as additional oil column may exist updip with no gas cap encountered in the Crosby wellbore," said Apache President and CEO G. Steven Farris. He said appraisals of both discoveries along with additional exploration drilling would be undertaken early next year. To conserve costs, the Crosby discovery will not be tested, as the reservoir characteristics of the Barrow group are well-known in the area.

Apache expects Crosby's development costs to be relatively low, as it could be developed in conjunction with the nearby Ravensworth discovery.

Apache also reported that its Van Gogh-1 appraisal well for the Vincent field, which extends onto Apache acreage in the Exmouth Sub-Basin about 9 miles north of Ravensworth, had encountered an oil column in the Cretaceous-age Barrow Group. An additional well will be required to further define the reservoir geometry, its extent, and the total height of the oil column.

Apache holds a 31.5 percent working interest in the producer. BHP is the operator with a 40 percent interest and Imprex holds the remaining interest.