Brunello-1 tests 72.5 MMcf, 1,230 barrels per day from 121 feet of Mungaroo
pay in Permit WA-356-P
HOUSTON, Sept. 10 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE,
Nasdaq: APA) announced today that its Brunello-1 discovery in the Carnarvon
Basin on Australia's Northwest Shelf flowed 72.5 million cubic feet (MMcf)
of gas and 1,230 barrels of condensate per day in a test of a single zone
in the prolific Triassic Mungaroo formation.
Brunello-1 -- Apache's third consecutive gas discovery in Permit
WA-356-P -- is located 10.6 miles (17 kilometers) northeast of Apache's
Julimar-1 discovery, which flowed at a combined rate of 85 MMcf of gas per
day in tests of two Mungaroo channel sands in April. The latest discovery
is 6.8 miles (11 km) northeast from the Julimar East-1, which logged 224
feet of net gas pay in six Mungaroo reservoirs in July.
The discovery, which encountered a single gas pay zone with 121 feet of
net pay, was drilled to a vertical depth of 12,027 feet in 508 feet of
water 99 miles from shore. The test was limited by the capacity of the
downhole and surface facilities. Apache owns a 65-percent interest in the
239,440-acre WA-356-P permit and operates the block. Kufpec holds the
remaining working interest.
"Brunello-1 extends the prolific productive trend established with our
Julimar discovery in April," said G. Steven Farris, Apache's president and
chief executive officer. "Brunello and Julimar are among a number of
high-potential exploration plays and prospects Apache has matured in our
core growth areas of Australia, Canada and Egypt."
Brunello, with estimated recoverable resources in the range of 300
billion cubic feet, will be suspended as a future production well.
Apache's exploration successes come 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.
Most of the Carnarvon Basin's existing gas supply is dedicated to long-term
contracts, many of which are nearing the end of their terms.
"The Australian natural gas market has changed markedly over the last
18 to 24 months, with recent sales in the range of U.S. $5.50 per thousand
cubic feet, or about triple Apache's recent realized price," Farris said.
"Stronger gas prices, which reflect rising demand, create opportunities for
exploration and infrastructure developments.
"With our discoveries at Reindeer, Julimar and Brunello, our
significant acreage, and our inventory of prospects that we will continue
to test later this year, Apache is positioned to accommodate the growing
demand for gas in Western Australia," Farris said. "Apache has begun the
preliminary engineering phase to develop our recent discoveries by
2010-2011."
In addition to its three discoveries in WA-356-P, Apache is planning to
drill three additional high-potential gas prospects on its 5.4 million
acres in the Carnarvon Basin before the end of 2007.
Apache also has two large developments that will push its oil
production in Australia higher in coming years. Apache's discoveries at
Theo, Ravensworth, Crosby, Stickle and Harrison resulted in the
Apache-operated Van Gogh and BHP-Billiton-operated Pyrenees developments in
the Exmouth Basin. These two projects 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.
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.
EDITORS NOTE: For a map of Apache's Carnarvon Basin acreage and a photo
of the Brunello-1 test, please go to
http://www.apachecorp.com/About_Us/Press_Room/Multimedia_Library/ and click
on "Australia."
This news release contains certain "forward-looking statements" within
the meaning of the "safe harbor" provisions of 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, risks and uncertainties,
including, without limitation, risks, uncertainties and other factors
discussed in our 2006 Form 10-K and on our Web site. 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. We
assume no duty to update these statements as of any future date.
APA-AU
SOURCE Apache Corporation
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