Wildcat tests 85 MMcf/day from two Mungaroo zones
HOUSTON, April 17 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE,
Nasdaq: APA) announced today that the Julimar-1 well on Australia's
Northwest Shelf discovered natural gas in the prolific Triassic Mungaroo
formation. Production tests on two zones flowed a combined 85 million cubic
feet (MMcf) per day.
"Apache has now matured a number of higher-risk, higher-reward
prospects across the 27 million acres we have assembled over the last
several years in our core growth regions of Australia, Canada and Egypt,"
said G. Steven Farris, Apache's president and chief executive officer.
"Julimar is the first discovery from a slate of high-quality exploration
prospects we intend to drill in our core growth regions this year."
The Julimar-1, which was drilled in 615 feet of water to a total depth
of 12,221 feet, discovered 132 feet of net pay in the Mungaroo on a trend
with other significant fields. The well is 5.5 miles north of the West
Tryal Rocks Field and 12 miles southwest of the Pluto Field; both are
multi-trillion- cubic-foot (Tcf) discoveries in analogous reservoirs. The
Julimar discovery well is also 14 miles northeast of the Gorgon Field which
is part of a potential 40 Tcf gas accumulation in the deeper Mungaroo.
The Julimar tested two of the four gas-bearing fluvial channel sands
encountered in the well. The J-10 sand, perforated between 11,877 and
11,893 feet, achieved a stable flow rate of 41 MMcf of gas and 400 barrels
of condensate per day. In a separate test, the J-1 sand, perforated between
10,440 and 10,466 feet, flowed at a stable rate of 44 MMcf and 435 barrels
of condensate per day. Flow rates of both zones were limited by the size of
the surface facilities.
"The initial results are extremely encouraging, and we believe the
ultimate recoverable reserves in this channel complex could exceed 1 Tcf,"
Farris said. "Appraisal drilling will be required to confirm the size of
the discovery, and we are planning a well for later in the year that will
not only appraise the Julimar-1 but also test some of the deeper
prospective channels."
The success of the Julimar well increases the probability of success on
additional prospects identified on the WA356P permit using similar
geological methods, including the Brunello prospect, located six miles
north of the Julimar-1.
Apache owns a 65-percent interest in the 239,440-acre WA356P permit.
Apache's latest discovery comes at a time when Australia's gas prices
are being pushed higher as a result of rising demand from Western
Australia's domestic markets and Pacific Rim liquefied natural gas markets.
This market change comes as most of the Carnarvon Basin's gas supply is
dedicated to existing long-term contracts that are nearing the end of their
terms.
In 2007, Apache also plans to drill another gas prospect, Rosella,
southwest of its John Brookes Field, the company's largest Australian gas
field. The John Brookes Field currently is producing 250 MMcf per day of
gas from three wells (138 MMcf per day net to Apache) with ultimate
reserves projected to be in excess of 1 Tcf.
Upon completion of the testing of the Julimar-1X, the Sedco 703 rig
will move to the Exmouth sub basin, southwest of Apache's operated Varanus
Island complex, where Apache and its partner, BHP-Billiton, plan to drill
six exploration prospects during the year.
In the Exmouth basin, Apache's discoveries at Theo, Ravensworth,
Crosby, Stickle and Harrison resulted in the Apache-operated Van Gogh and
BHP- Billiton-operated Pyrenees developments. These two projects, scheduled
to come on line in late 2008 and early 2009, are expected to add net
production of 40,000 barrels of oil per day when fully developed, equal to
about 15 percent of Apache's current worldwide liquids production.
"With our exploration opportunities maturing, each of our core growth
areas will have a large component of exploration activity this year,"
Farris said, "We will report the results to our shareholders on a periodic
basis throughout the year."
Apache Corporation is a large oil and gas independent with operations
in the United States, Canada, the United Kingdom North Sea, Egypt,
Australia and Argentina.
EDITOR'S NOTE: To view a photo and map of the well described in this
release please go to Apache's Web site, http://www.apachecorp.com.
This news release contains certain "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995 including,
without limitation, expectations, beliefs, plans and objectives regarding
Apache's production, exploration potential, and future drilling activities.
Any matters that are not historical facts are forward-looking and,
accordingly, involve estimates, assumptions and uncertainties. There is no
assurance that Apache's expectations will be realized, and actual results
may differ materially from those expressed in the forward-looking
statements.
APA-AU
SOURCE Apache Corporation
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