HOUSTON, June 16 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that new production from its Faghur Basin fields has propelled its Egyptian gross-operated oil and gas production above 330,000 barrels of oil equivalent (boe) per day, surpassing the company's late-2005 goal of doubling output from Egypt's Western Desert within five years.
Incremental production from several Faghur Basin discoveries – including Phiops – pushed output from the basin above 26,000 barrels per day following completion of new Kalabsha processing and transportation facilities.
Apache invested $4.2 billion in exploration, development and facilities to achieve the "2X" production goal. The company also:
- Discovered 57 new fields;
- Drilled 869 new wells;
- Acquired 3.8 million acres (17,300-square kilometers) of 3-D seismic;
- Designed and constructed gathering facilities and two new gas processing trains for Qasr Field gas production;
- Installed a major strategic gas pipeline compression project on Egypt's northern gas pipeline;
- Built a third processing train at the Qarun Concession;
- Implemented 13 waterflood secondary oil recovery projects; and
- Completed the first phase of Kalabsha facilities in the Faghur Basin.
"Apache's course in Egypt was set in 2003 when the Qasr Field was discovered," said G. Steven Farris, Apache's chairman and chief executive officer. "As our success continued and the magnitude of the opportunities in the Western Desert became clear, 2X was conceived to encourage our Egyptian partners to assist us in ramping up activity and getting the resources needed to expand operations across the Western Desert."
Apache's current production of more than 330,000 boe per day exceeds the 2X production goal of 326,076 boe per day.
"The emergence of the Faghur Basin as a key component for Apache's continued growth in Egypt – along with the hard work of the Apache team – permitted us to fast-track production through the Kalabsha Facilities Project and enabled Apache to reach the 2X goal with seven months to spare," Farris said.
Apache also recently completed the Phiops 9 well, which tested at rates of 4,632 barrels of oil per day from the Alam El Bueib-3E (AEB-3E) formation. "This is another example of the quality of the production coming from the Faghur Basin," Farris said. "The newly commissioned Kalabsha facilities allowed us to begin production from the Phiops 9 immediately. We expect to complete additional infrastructure projects by year-end that will permit Faghur Basin production to grow to 40,000 barrels per day."
In 2005, when the 2X campaign was initiated, Apache's gross-operated production totaled 109,000 barrels of oil and 325 million cubic feet (MMcf) of gas per day. Current production totals 195,000 barrels of oil and 810 MMcf of gas per day.
Apache, the largest U.S. investor in Egypt's economy, is the largest oil producer in the Western Desert, delivering 27 percent of Egypt's total daily oil output. Since setting the 2X goal, Apache has moved up to be the country's third-largest oil and gas producer.
"During the first quarter of 2010, Apache's oil and gas production generated $10.6 million per day of revenue to the Egyptian government, and our joint ventures with the Egyptian General Petroleum Corporation directly employ nearly 4,500 Egyptians," Farris said. "Our partnership with EGPC is a win-win for both Apache and Egypt.
"The 2X goal served as a catalyst to encourage cooperation between Apache and our partners," Farris said. "Going forward, with 11 million acres to explore and develop, active seismic acquisition and exploration programs, and new infrastructure projects in the pipeline such as the second phase of the Kalabsha facilities, our Egyptian operations will continue to be a key driver in Apache's growth."
Apache Corporation is an independent oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates and investor information, in addition to copies of all recent press releases, on its Web site, www.apachecorp.com.
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 most recently filed Annual Report on Form 10-K, on our Web site, www.apachecorp.com, and in our other public filings and press releases. 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. .
SOURCE Apache Corporation