Overview

The Egypt region represents Apache's largest acreage position with more than 11 million gross acres in 21 separate concessions (18 producing). Apache is the largest producer of liquid hydrocarbons and natural gas in the Western Desert and the second largest in Egypt. Apache's production is operated under two joint ventures, Khalda and Qarun Petroleum Company. In addition, we have production from non-operated properties at Northeast Abu Gharadig (NEAG).

In 2009, the Egypt region contributed 30 percent of Apache’s production revenue, 26 percent of total production with 152,600 barrels of oil equivalent (Boe) per day, and 13 percent of total estimated proved reserves.

Apache drilled 164 wells in the Western Desert (including 23 wildcats) during 2009. Fourth-quarter drilling successes in the Alam El Bueib at Phiops and West Kalabsha-2X in the Faghur basin with 5,085 Boe per day, along with successful completions in the Matruh concession at Jade-8 with 18 million cubic feet per day (MMcfd) and 1,950 barrels per day (Bpd) and Falcon-2 with 1,900 Bpd helped drive gross production to a record high 316,000 Boe per day at year end.

Development projects

In the Khalda concession during 2009, we continued to monetize our Qasr gas discovery through completion of two additional Salam gas processing facilities, trains three and four, and an associated pipeline compression project on the Western Desert Northern Gas Pipeline. These facility expansions increased flow rates from our Qasr field discovery to 600 MMcfd and increased total net production in Egypt by 100 MMcfd and 5,000 Bpd.