Apache bulks up in Permian Basin

Source: Apache Corp.

Within weeks of Apache Corp. (APA) taking over the Weir lease in Gaines County, Texas, two wells that had been producing 80 barrels of oil per day have new, more powerful pumps that are pulling 700 barrels per day to the surface. Work is under way on a third well. 

The Weir story is the first big news from Apache’s January 2006 acquisition of Amerada Hess’s interests in eight fields located in the Permian Basin of West Texas and New Mexico, six of which are operated, for $269 million. 

The transaction – the second acquisition in the Permian Basin in a little more than a year – added 561 wells, 27 million barrels of proved reserves and plenty of opportunities for Apache’s aggressive operating style. Net production is about 3,100 barrels of oil and 6 million cubic feet of gasper day. 

The fields fit comfortably with Apache’s existing production in Lea County, N.M., and Gaines County, said Doug O’Neil, Central Region production manager. 

“We are busier than heck,” O’Neil reported. “We finished a large compression project in the Adair Field, also in Gaines County, injecting a mixture of produced natural gas and carbon dioxide. 

“We’ve drilled one well there, worked over four others and we’ve got a rig working there right now,” he said.
At Monument, N.M., Apache took over as operator of the North Monument Grayburg-San Andres Unit. Already, the Central Region is going to work on 25 production enhancement projects even as technical teams evaluate infill drilling opportunities and study whether the unit is a candidate for tertiary recovery projects. 

Apache moved some experienced hands to the new fields and supplemented the teams with about 20 new hires – Amerada Hess employees and contractors experienced in the company’s operating style. 

Mike Warren moved over from senior foreman of Apache’s Eunice office to Monument. He was replaced at Eunice by James Pyle, who had been a senior mechanic at Crane. 

Also, Freddie Gibbs was promoted to senior foreman, supervising operations at Adair and Denver City. David Massey was promoted to foreman at Denver City, and Paul Bedwell is now foreman at Adair.

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