Apache Corporation (NYSE: APA) announced today that the Neith S. 3X appraisal of its 2,634 barrel-per-day 1X discovery from earlier this year has confirmed the presence of commercial hydrocarbons on the Khalda Offset Concession in Egypt's Western Desert.
The company has applied for a declaration of commerciality for the Khalda Offset Concession which, when approved, will enable it to begin recouping prior expenditures of approximately $40 million out of existing production on the adjacent Khalda Concession.
A declaration of commerciality also would provide a mechanism for recovering further drilling costs on Khalda Offset.
The 3X tested at a daily rate of 1,170 barrels of 44-degree API crude oil and 1.3 million cubic feet of gas on a two-inch choke with 100 pounds per square inch of flowing tubing pressure.
The test was conducted in the Khatatba sandstone from perforations between 14,406 feet and 14,456 feet in the Neith South field.
Apache has a 40 percent contractor interest in the well. Repsol, the operator, holds a 50 percent interest and Novus holds the remaining 10 percent.
The 3X is located approximately nine miles away from existing facilities where there is spare capacity to process and export additional oil production.
The 1.575 million-acre Khalda Offset Concession is located approximately 267 miles west of Cairo.
It is adjacent to the prolific Khalda Concession, which comprises approximately 318,000 acres and is Apache's single most prolific producing area.
Khalda's current gross production averages approximately 43,000 barrels of oil and condensate and 200 million cubic feet of gas per day.
Apache Corporation is a large gas and oil independent with operations in the United States, Canada, Egypt, Western Australia, Poland and China. SOURCE Apache Corporation
Source:Apache.com
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