Two New Apache Egypt Discoveries Test a Combined 70 Million Cubic Feet of Gas Per Day

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Two New Apache Egypt Discoveries Test a Combined 70 Million Cubic Feet of Gas Per Day

August 19, 2004 at 12:00 AM EDT
Two New Apache Egypt Discoveries Test a Combined 70 Million Cubic Feet of Gas Per Day HOUSTON, Aug. 19 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that its latest two discoveries in Egypt's Western Desert tested at a combined rate of 70 million cubic feet (MMcf) of natural gas and 2,330 barrels of condensate per day from prolific deep- Jurassic sands.

The Mihos-1X discovery is located on the Matruh Concession, which the company operates with a 100 percent contractor-interest. The well logged 191 feet of net pay in the Cretaceous AEB 6 and Jurassic Upper and Lower Safa horizons between 12,350 feet and 15,700 feet. Thirty-five feet of the Lower Safa were perforated between 15,385 feet and 15,420 feet, testing at a daily rate of 41.8 MMcf of gas and 1,419 barrels of condensate on a one-inch choke with 2,378 pounds per square inch (psi) of flowing wellhead pressure. The discovery did not require hydraulic-fracture stimulation prior to flow testing.

The Mihos discovery proves up a 1,500-acre trap in the Lower Safa reservoir with a gross hydrocarbon column height in excess of 250 feet. Apache plans to tie the well into the Matruh manifold, running directly to its Tarek gas plant about 7-1/2 miles to the east. It is expected to commence production in early September, bringing the Tarek plant up to its full capacity of 100 MMcf per day.

The drilling rig will now move from the Mihos well to Apache's Pamplona-1X location, a 15,000-foot Jurassic wildcat designed to test a 2,400-acre closure situated 7-1/2 miles southeast of the Mihos discovery and directly south of the Tarek gas plant.

The Imhotep-1X discovery on the Khalda Offset Concession, which Apache operates with a 100 percent contractor interest, flow-tested at a rate of 28.4 MMcf of gas and 911 barrels of condensate per day following hydraulic- fracture stimulation.

Two sands in the Jurassic-age Lower Safa formation between 15,292 feet and 15,392 feet were tested on a two-inch choke with 1,385 psi of flowing wellhead pressure. The well logged 76 feet of net pay; another 22 feet of possible upper and lower Safa pay was calculated in the well.

Lower Safa sands in Imhotep are better developed, thicker and 160 feet structurally higher than in Apache's Matruh field, located approximately three miles north of the discovery. These sands are equivalent in age to those at Qasr and Obaiyed, the two largest gas fields in Egypt's Western Desert. Matruh's cumulative production since September 2002 from three wells in the main-pay Jurassic Upper Safa formation has exceeded 17.4 billion cubic feet of gas and 1.9 million barrels of oil.

Imhotep is on production, flowing through Apache's Tarek gas plant at a daily rate of 31.8 MMcf of gas and 1,789 barrels of condensate.

Apache Corporation is a large oil and gas independent with core operations in the United States, Canada, Egypt, the United Kingdom North Sea and Australia.

This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding reserves, future production, and drilling plans. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are future exploration and development results, availability of needed equipment and personnel, and the political situation in the Middle East. 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.

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