HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE,
Nasdaq: APA) today announced that its Kahraman B-22 wildcat natural gas
well, located 18 miles north of the company's world-class Qasr Field in
Egypt's Western Desert, tested 16 million cubic feet (MMcf) of gas and 486
barrels of condensate per day from a 40-foot section in the Jurassic Lower
Safa formation.
The Kahraman B-22 prospect was identified using a new Jurassic
exploration model based on the geological and geophysical analysis of the
Qasr field, which was discovered on the Khalda Concession by Apache in
2003. Qasr, with proved reserves of 2 trillion cubic feet (Tcf) of gas and
60 million barrels of condensate, is currently producing 362 MMcf of gas
and 13,000 barrels of condensate per day from eight wells. Qasr has
produced a total of 97 billion cubic feet of gas and 4.2 million barrels of
condensate from the Jurassic reservoir since production started in July
2005. Qasr field also produces 8,700 barrels of oil per day from 11 wells
in the overlying Alam el Buieb (AEB) and Bahariya formations.
The wildcat is located approximately 18 miles north of Qasr field and
9.3 miles south of Shell's Obaiyed field, the nearest Jurassic gas
production. The well was drilled to the Jurassic Lower Safa formation at a
total depth of 13,822 feet in order to appraise the westward extent of the
shallow Kahraman "B" Bahariya oil field and to explore for deeper traps in
the Alam el Bueib and Jurassic Safa formations.
The Kahraman B-22 logged a total of 84 feet of net pay from
Jurassic-age sands between 12,379 and 12,849 feet. The thickest and best
quality of this pay was perforated between 12,805 and 12,840 feet and
fracture stimulated. The Lower Safa tested at an average rate of 16 MMcf of
gas and 486 barrels of condensate per day on a 2-inch choke with a flowing
well head pressure of 660 pounds per square inch. Results from the recently
drilled Kahraman UC-88 well, located 3.3 miles to the southwest of the
Kahraman B-22, indicate a possible Jurassic sandstone play expanding
northward through the Kahraman B-22 well and onto Apache's Shushan "C"
concession. Apache recently acquired 83 square miles of new 3-D seismic
over the Shushan "C" lease. The Kahraman B-22 is located on the southern
edge of this play and new wells are planned in the Shushan "C" concession
to extend the Jurassic play.
"The Kahraman B-22 is a significant distance from known Jurassic gas
accumulations and may open up a new area for development," said Rodney J.
Eichler, executive vice president and general manager of Apache's
operations in Egypt. "Appraisal drilling may show the sand quality and pay
improve to the north."
"This discovery opens a new chapter in Apache's exploration and
development of Jurassic formation gas reserves at Khalda," Eichler said.
"Beginning with the Qasr discovery - the largest in Apache's 52-year
history - we have drilled nine commercial discoveries tapping Jurassic
formation gas reserves at Khalda and completed 34 producing wells. To date,
Apache has booked 2.3 trillion cubic feet (Tcf) of gas and 67 million
barrels of condensate at Qasr and other Jurassic fields."
Currently, gross production from Apache's Jurassic fields is 512 MMcf
of gas and 18,200 barrels of condensate per day, which is the limit of
existing processing facilities. Current net production is 224 MMcf of gas
and 8,000 barrels of liquid hydrocarbons per day.
Apache has approximately 23,000 square kilometers of 3-D seismic data
covering nearly 56 percent of its 10 million acres in Egypt, Eichler said.
The 3-D seismic has been key to identifying deep structures missed by
earlier 2-D surveys, particularly in the Qasr, Syrah, Muntaga and Matruh
areas.
Earlier exploratory efforts in the area failed because many of the
wells stopped short of the Jurassic objectives. The integration of modern
geological concepts using 3-D seismic interpretation tied to well log
correlations provides a better understanding and mapping of the Jurassic
formations.
Apache also announced that it has awarded a $200 million contract to
Petrofac Limited to construct a third processing train at its Salam natural
gas plant on the Khalda Concession. The new train, to be completed before
the end of 2008, will expand Khalda gas processing capacity by 100 million
cubic feet (MMcf) of sales gas and 14,000 barrels of sales condensate per
day to 610 MMcf and 52,000 barrels per day, including access to processing
capacity at Shell's Obaiyed plant that will increase to 210 MMcf and 15,000
barrels per day before the end of 2008.
In addition, Apache has proposed construction of a similar processing
train that would bring total processing capacity to 710 MMcf of gas and
66,000 barrels of condensate per day by the end of 2008. The fourth train
is awaiting approval from the Egyptian General Petroleum Corporation
(EGPC). Apache also is planning to install additional pipeline and
production equipment to supply the new processing facilities as well as
pipelines to deliver the increased sales volumes to the Egyptian pipeline
grid in both the north and south of the country.
Apache Corporation is a discoverer and producer of oil and gas energy
resources for the advancement of mankind in the interest of long-term
investors seeking share appreciation.
This 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 reserves,
future production, and marketing plans. Among the important factors that
could cause actual results to differ materially from those indicated by
such forward-looking statements are future exploration and development
results, availability of needed equipment and personnel, completion of
required infrastructure, and the political situation in the Middle East.
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-EG
SOURCE Apache Corporation
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