Apache Details Liquids-Rich Identified Resource Inventory

abarrelfullabarrelfull wrote on 15 Jun 2012 13:57
Tags: apache upstream

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Apache Corporation (NYSE, Nasdaq: APA) today released new, detailed resource estimates of its oil- and liquids-rich portfolio, including substantial Permian and Anadarko basin holdings, recently acquired acreage in the liquids-rich Mississippian Lime and Williston Basin resource plays, and significant new plays and oil exploration prospects in Canada, Argentina, Alaska and Kenya.

"For Apache, this is the time to drill more wells: We have captured a vast, liquids-rich resource base and drilling costs are declining," said G. Steven Farris, Apache's chairman and chief executive officer. "By remaining committed to Apache's historical focus on returns and preserving our conservative financial structure — which means living within our cash flow — our portfolio is positioned to continue to deliver long-term growth and value for our shareholders."

Resource estimates released Thursday at the company's annual investor day include:

  • Apache, the second-largest producer and acreage owner in the Permian Basin of West Texas and eastern New Mexico, has identified approximately 34,500 drillable locations with an estimated net resource of 3.8 billion barrels of oil equivalent (Boe).
  • In the Anadarko Basin in western Oklahoma and the Texas Panhandle, Apache has identified approximately 32,500 drillable locations primarily in the Granite Wash, Cleveland, Tonkawa and Marmaton formations with an estimated net resource of 5.4 billion Boe.
  • In northern British Columbia, Canada, Apache has validated an outstanding new shale play in the Liard Basin with net estimated sales gas of 48 trillion cubic feet of natural gas (8 billion Boe) across 430,000 acres held with a 100-percent working interest.
  • The resource estimate at Liard is based on recent drilling, test results and earlier well control points. "The D-34-K well is one of the best shale wells we've seen in any play," Farris said. "Our analysis indicates that the formation characteristics are remarkably consistent across this large basin."
  • In Argentina, Apache estimated that its 450,000-acre position in the Vaca Muerta oil shale has a net potential recoverable resource of 800 million Boe.

New exploratory oil prospects include:

  • Apache has built a 580,000-acre (net) position in the Mississippian Lime play in Kansas and Nebraska with an inventory of 7,200 potential locations and an estimated resource potential of 2 billion barrels of oil.
  • Apache assembled a 300,000-acre position (net) in the Williston Basin in Daniels County, Montana, with more than 1,900 potential locations and potential resource of 1 billion barrels of oil.
  • In Alaska — where this year Apache plans to drill its first well — the company has identified 1.3 billion barrels of oil of yet-to-be-found potential.
  • In Block L-8 offshore Kenya, Apache has identified eight prospects with net potential of 1.4 billion barrels of oil. Apache expects to commence drilling its first well in the deepwater block in the third quarter.

"Apache has captured the largest inventory of liquids-rich drillable locations in our history, including additional upside potential from exploration activities in the deepwater Gulf of Mexico, Egypt and Australia," Farris said. "We are well-positioned to deliver long-term profitable growth with our balanced portfolio, focus on rate of return, and prudent financial structure."

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