HOUSTON, June 21 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE,
Nasdaq: APA) today announced that its Theo 3-H well flowed 9,694 barrels of
oil per day in a test of the first horizontal well at the Van Gogh
development in Western Australia's Exmouth Basin.
Apache is planning to drill 18 additional long-reach horizontal
laterals at Van Gogh later this year with first production anticipated by
the end of the first quarter of 2009.
The Theo 3-H well was drilled in 1,205 feet of water to a measured
depth of 10,598 feet with a 4,554-foot-long horizontal section in the Top
Barrow formation. The test was limited by the capacity of downhole and
surface equipment.
"The Theo 3-H horizontal well confirms our assessment of the
productivity of the Top Barrow Sand reservoir," said G. Steven Farris,
Apache's president and chief executive officer. "The Van Gogh development
is one of six projects in Apache's core growth areas of Australia, Canada
and Egypt that are projected to add aggregate production of 108,000 barrels
of oil equivalent per day over the next four years."
Apache owns 52.5 percent of the $500 million Van Gogh development,
which will utilize a floating production, storage and offloading (FPSO)
vessel with processing capacity of 63,000 barrels per day and storage
capacity of 620,000 barrels. Apache's project economics were based on a net
production forecast of 20,000 barrels per day at a flat price of $45 per
barrel. The current price for Tapis blend, the Asia-Pacific benchmark crude
oil, is approximately $76 per barrel, about $8 above West Texas
Intermediate, the U.S. benchmark.
The BHP-Billiton-operated Pyrenees development -- which is anticipated
to receive a formal go-ahead by late June -- is expected to add 20,000
barrels of oil per day to Apache's net production during 2009.
Apache currently is drilling the Julimar East-1 appraisal well 3.6
miles (6 kilometers) northeast of the Julimar-1 natural gas discovery,
which flowed a combined 85 million cubic feet of gas per day in tests of
two Triassic channel sands. The Julimar East-1 will appraise the channels
tested in the discovery well and target additional deeper Triassic sands.
"Julimar is one of the 10 high-potential prospects and plays on the
'hit parade' of our 2007 exploration program in Apache's core growth
areas," Farris said.
Rising demand in Australia has pushed up natural gas prices, with
recent contracts at US $4 to $5 per thousand cubic feet (Mcf), compared to
Apache's average price of $1.65 per Mcf in 2006.
Apache is Australia's most active offshore operator with interests in
11.9 million acres. An increase in exploration activity as well as
development of Van Gogh and Pyrenees, has increased Apache's capital
program in Australia to $500 million in 2007 from $187 million in 2006.
Apache Corporation is a large oil and gas independent with operation in
the United States, Canada, the United Kingdom North Sea, Egypt, Australia
and Argentina.
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
production and exploration 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
 back to top
Related links:
http://www.apachecorp.com
CONTACT:
Media, Bill Mintz, +1-713-296-7276,
Investors, Robert Dye, +1-713-296-6662, or David Higgins,
+1-713-296-6690, all of Apache Corporation
|
