West Kalabsha I-1X produces 4,554 barrels of oil, 10.1 MMcf of gas per day

Apache Corporation announced the West Kalabsha I-1X discovery in the Faghur Basin of Egypt’s Western desert. The well, located approximately 10 miles southwest of Apache’s Phiops Field, test-flowed at a rate of 4,554 barrels of oil and 10.1 million cubic feet (MMcf) of natural gas per day from 105 feet of net pay in the Jurassic Safa formation.

As a result of Apache’s oil-focused exploration program, the West Kalabsha I-1X is the most recent in a series of oil discoveries in the Faghur Basin. Currently under way is an expansion of processing and transportation infrastructure projects that will enable production capacity in the Faghur to rise from 8,100 barrels per day to 40,000 barrels per day in late 2010.

“Apache previously established production in the Safa formation at West Kalabsha-C and Phiops in the Faghur Basin,” said Tom Voytovich, vice president of Apache’s Egypt Region.

 “This most recent discovery solidifies the Jurassic Safa as a primary objective in the basin. The well, on a structure identified by 3-D seismic, encountered pay in over 200 feet of total sand, demonstrating the potential size of Safa accumulations in the Faghur. This discovery certainly adds a new dimension to our exploration focus.

“West Kalabsha is proving to be a fertile hunting ground; with the ongoing infrastructure expansion, the time from concept to actual production should be shortened dramatically,” Voytovich said. “We have two new 3-D seismic surveys completed in the basin, and we are about to begin acquisition on our largest survey of the year to the west, along the trend established by recent discoveries, in an area where no previous 3-D data exists but regional 2-D data indicates promising geological features.”

Apache owns a 100-percent contractor interest in the West Kalabsha concession and has plans to drill four more exploratory wells targeting the Alam el Bueib (AEB) and Safa formations in the Faghur basin during 2010. Apache plans to drill an appraisal test two miles southwest of the latest discovery before full development plans are formulated.

Increased oil output from the Faghur Basin is forecast to be one of the key drivers of Apache’s 2010 production growth – along with the Van Gogh and Pyrenees oil field developments in Western Australia – and reinforcing Apache’s strategic commodity balance. Apache has projected 5 to 10 percent production growth in 2010. Liquid hydrocarbons accounted for 50 percent of Apache’s 2009 global production and 72 percent of revenues.


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