Apache's Qasr-6 Tests 28.8 MMcf Gas, 1,037 Bbls Condensate; Qasr-9 Flows 4,826 Bbls Oil Per Day in Egypt

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Sep 7, 2004

Apache Corporation (NYSE, Nasdaq: APA) today announced two new wells in its prolific Qasr field on Egypt's Khalda Concession. The Qasr-6 appraisal well test-flowed 28.8 million cubic feet (MMcf) of natural gas and 1,037 barrels of condensate per day from two zones in the Jurassic-age Lower Safa formation, while the Qasr-9 development well — flowing at 4,826 barrels of oil and 0.75 MMcf of gas per day — registered the strongest test to date from Cretaceous-age Alam El Bueib (AEB) sands at Qasr.

The Qasr-6 well encountered a 250-foot gross sand column with 234 feet of net pay. The well extends to the west the known limits of the reservoir and has a similar gas/water contact seen in previous Qasr wells. Qasr-6 is located approximately 1.8 miles northwest of the Qasr-5 well and 4.3 miles west of the Qasr-1X discovery.

Qasr-6 was tested on a one-inch choke with 1,685 pounds per square inch (psi) of flowing wellhead pressure. Seventy feet of perforations were in two zones between 13,490 feet and 13,540 feet and between 13,570 feet and 13,590 feet.

"Qasr-6 further confirms our modeling of the field as the largest onshore gas discovery in Apache's 50-year history," said G. Steven Farris, Apache's chief executive officer and president. "By far, the most productive horizon at Qasr is in the Jurassic age, but Qasr-9 confirms the productivity of the Cretaceous AEB sands, which we have logged in a number of the Qasr Jurassic wells we have drilled."

Qasr-9, located approximately 3.6 miles southeast of Qasr-6, was tested on a two-inch choke with 280 psi of flowing wellhead pressure. The well logged 61 feet of net pay in the AEB 3E sand, with excellent sandstone quality and pressures. It was perforated between 11,310 feet and 11,353 feet.

Apache operates the Khalda Concession with a 100 percent contractor interest.

Apache recently signed a 25-year, 300-MMcf-per-day Gas Sales Agreement with the Egyptian General Petroleum Corporation for Qasr production. The company now estimates Qasr's ultimate recoverable gas reserves to be in excess of 2 trillion cubic feet, with condensate recoveries in the range of 40 million to 50 million barrels. Qasr-9 is expected to be on production this month; Qasr-6 will come on stream as soon as additional infrastructure is added to accommodate the Gas Sales Agreement.

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