Overview

Egypt

Apache has 21 years of exploration, development and operations experience in Egypt and is one of the largest acreage holders in Egypt’s Western Desert. At year-end 2016, the company held 4.8 million gross acres in 23 separate concessions. Development leases within concessions currently have expiration dates ranging from four to 20 years, with extensions possible for additional commercial discoveries or on a negotiated basis. Approximately 63 percent of the company’s acreage in Egypt is undeveloped, providing considerable exploration and development opportunities for the future. In December 2016, Apache was notified by the Egyptian Ministry that it was the successful bidder in two new concessions, which will add an additional 1.6 million gross undeveloped acres to its portfolio.
 
The company’s estimated proved reserves in Egypt are reported under the economic interest method and exclude the host country’s share of reserves. The Egypt Region, including the one-third noncontrolling interest, contributed 33 percent of 2016 production, 21 percent of year-end estimated proved reserves, and 37 percent of estimated discounted future net cash flows. Excluding the noncontrolling interest, Egypt contributed 24 percent of 2016 production, 15 percent of year-end estimated proved reserves, and 28 percent of estimated discounted future net cash flows.

While Apache has historically been one of the most active drillers in the Western Desert, activity has been curtailed for the past several years in response to weak oil prices. In 2016, the region drilled 47 development and 14 exploration wells. Approximately 57 percent of the exploration wells were successful, further expanding Apache’s presence in the westernmost concessions and unlocking additional opportunities in existing plays. A key component of the region’s success has been the ability to acquire and evaluate 3-D seismic surveys that enable Apache’s technical teams to consistently high-grade existing prospects and identify new targets across multiple pay horizons in the Cretaceous, Jurassic and deeper Paleozoic formations.

In 2017, Apache plans to operate 8 to 10 drilling rigs and drill approximately 90 to 100 wells. In addition, Apache will initiate a large, continuous 3-D seismic survey program to support development on its existing acreage and exploration on its new concessions. The program will provide newer vintage, higher resolution imaging of the substrata across Apache’s Western Desert position, allowing Apache to build and high-grade its drilling inventory.

EGYPT OPERATIONAL HIGHLIGHTS

  First-QUARTER
2017
First-QUARTER
2016
Oil production (Bpd) 101,718 98,259
Total liquids production (Bpd) 102,673 99,547
Natural gas production (Mcfd) 407,194 397,598
Barrels of oil equivalent per day 170,539 165,813

 

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