Apache adds Paleozoic oil in Egypt Western Desert

By OGJ editors
HOUSTON, June 16
– Apache Corp. has drilled eight new field discoveries in 10 attempts in 2011, including its first Paleozoic success, as it pushes younger Jurassic and Cretaceous plays farther southwest in Egypt’s Western Desert.

Apache’s five latest oil discoveries in the Faghur basin are:

• West Kalabsha-I-4 logged 79 ft of net pay in Jurassic Safa sands and tested at 7,150 b/d of oil and 11.4 MMcfd of gas.
• Faghur North-1X logged 25 ft of net pay in the Safa and Paleozoic Desouqy sands and tested a combined 1,444 b/d 3.9 MMcfd.
• Faghur South-1X logged 38 ft of net pay in Safa and Cretaceous Alam El Bueib-6 sands and tested 2,768 b/d and 4 MMcfd from the Safa.
• Huni-1X logged 27 ft of net pay in the AEB-3 sands and tested 970 b/d from the AEB-3E sand.
• Neith North-1X logged 20 ft of net pay in the AEB-3 sands and 57 ft of net pay in the Safa sands. A Safa well test is planned this month.

Meanwhile, Apache’s AG-96 development well in the Abu Gharadig concession tested 3,347 b/d and 1 MMcfd from the Cretaceous Lower Bahariya formation. Drilled on acreage acquired from BP in late 2010, its results are expected to lead to several more wells by the end of 2011.

Tom Voytovich, vice-president of Apache’s Egypt Region, said, “The Faghur basin continues to be a successful focus area for Apache, with AEB, Safa, and now Paleozoic reservoirs that have proven to be prolific oil and gas producers. These recent discoveries support the multipay potential of this oil-prone area of the Western Desert. The Huni and Neith North discoveries continue Apache’s recent exploration success in the eastern area of the Faghur basin.”

“These discoveries and production from the Tayim development lease approved during the revolution period illustrate the fact that Egypt’s energy sector is continuing to move forward,” Voytovich said. “Our recent drilling successes provide clear evidence of the exploration potential on Apache acreage in Egypt and the benefits of working in stacked-pay areas.”

Apache recently drilled the first discovery on its westernmost exploration concession. The Siwa-D-1X drilled in the Siwa concession pushed Jurassic and Cretaceous plays farther south and westward and will lead to follow-up exploration prospects. Apache expects to commence production from the well upon approval of a development plan later this year.

The Tayim West-1X discovery in the West Kalabsha concession represents the first Paleozoic success found in a reservoir separate from the younger proven Jurassic and Cretaceous sands and opens up the area to further deep tests in upcoming wells. The discovery is on production.

Apache is drilling three more wells, Mandulis-1X, Neilos-1X, and Faghur North-2X. Eight other exploratory wells are planned for the area this year.

Apache continues to interpret 3D seismic surveys for exploratory opportunities, including a recently completed 400 sq mile survey across the Apache-operated Sallum concession on the west side of the basin and a 656 sq mile survey covering the eastern part of the basin on the Khalda Offset, South Umbarka, and Shushan concessions.

Apache’s gross operated production in Egypt totals 215,000 b/d of oil and 900 MMcfd of gas, including 40,000 b/d of oil from the Faghur basin.



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