Our activity in Egypt began in 1994 with our first Qarun discovery well, and today we are one of the largest acreage holders in Egypt’s Western Desert. At year-end, we held 9.8 million gross acres, with gross oil production of 198,000 barrels per day and gross natural gas production of 912 million cubic feet (MMcf) per day in 2013, or 90,000 barrels per day and 356 MMcf per day net to Apache’s consolidated holdings. Although 3 million gross undeveloped acres expired in January 2014, we continue to pursue longer term extensions on areas we believe provide attractive growth opportunities. Of our remaining acreage, 72 percent is undeveloped, providing us with considerable exploration and development opportunities for the future.
Fourth-Quarter, Full-Year 2013 Update
- In Egypt, Apache’s operations continue uninterrupted. Fourth quarter gross oil production was 204,089 barrels per day and gross gas production was 918 million cubic feet (MMcf) per day, for a total of 357,098 barrels of oil equivalent (Boe) per day.
- Increased oil production occurred at Razzak and Kalabsha as a result of a number of new high-rate wells
coming on stream. Other core areas slightly increased or remained flat due to infield drilling and water flood
- Apache averaged 27 rigs in the fourth quarter and drilled a total of 71 gross (69 net) wells.
- Based on new field discoveries in the North Tarek and Khalda Offset concessions, Apache has applied for two additional development leases expected to be approved in 2014. Three recently approved leases brought the number of applications approved during 2013 to 2020. The leases approved in 2013 converted 66,000 acres of short-term exploration acreage into 20- to 25-year term development leases. Apache currently has 119 development leases that cover almost 2 million acres. New field discoveries include:
- The Apries-1X, located in the Khalda Offset Concession within the Shushan Basin, tested 4,389 barrels of oil and 14.2 MMcf of gas per day from Paleozoic Basur sand. The well encountered 87 feet of net pay in the Basur.
- The NTRK-H-1X, located in the North Tarek Concession within the Matruh Basin, tested 20 MMcf of gas and 250 barrels of condensate per day from 60 feet of fracture-stimulated Jurassic Lower Safa pay. The well was a follow-up to the previously announced NTRK-G-1X Upper Safa discovery.
- Apache also reported the first well of a multi-well horizontal drilling program in the Western Desert, the AG-115H in the Abu Gharadig Field, was drilled, completed and is currently producing. During December, the Khalda joint venture well produced an average of 1,681 barrels of oil and 3 MMcf of gas per day from a 1,970-foot lateral of horizontal section within a 20 foot oil zone in the Abu Roash D limestone. The AG-115H was one of eight wells initiated during 2013 to test horizontal drilling technology to increase recoveries in tight conventional and unconventional reservoirs. Additional horizontal drilling is planned in the Abu Gharadig and surrounding fields in 2014.
- During the quarter, the previously-announced transaction with Sinopec International Petroleum Exploration and Production Corporation closed and Apache began reporting a noncontrolling interest.
Apache Egypt Region Acreage and Key Basins