Our Gulf of Mexico assets are located in areas primarily onshore and offshore Texas, Louisiana, Alabama, and Mississippi. The area is divided into two regions: Gulf of Mexico (GOM) Deepwater, and Gulf Coast Onshore.
On Sept. 30, 2013, Apache announced it had completed the previously announced sale of its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC, a portfolio company of Riverstone Holdings, for $3.75 billion in cash (subject to customary post-closing adjustments) and assumption of liabilities for future abandonment costs of the properties with a discounted value of $1.5 billion. Apache retained 50 percent of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested. Read the news release.
Fourth-Quarter, Year-End 2013 Update
GULF COAST ONSHORE
- Fourth-quarter 2013 production averaged 30,421 barrels of oil equivalent (Boe) per day, down from 31,823 Boe per day in the third quarter, due to weather impacts in the Second Bayou, Golden Meadow, Main Pass 69 and Sabine Pass 24 areas.
- Oil and liquids production decreased 2 percent from the third-quarter 2013, but still managed a 3-percent increase over the fourth quarter of 2012.
- Apache averaged two operated and two non-operated drilling rigs while completing a total of five gross (five net) wells during the quarter.
- In the Golden Meadow Field, Apache completed and brought online the last of its 16 well 2013 drilling program. Gas production in the field increased 3 million cubic feet (MMcf) per day as a new 8-inch pipeline was completed to allow increased sales from the north part of the field.
Apache Gulf Coast Onshore Region Acreage and Key Projects
Gulf of Mexico Offshore
- Fourth-quarter 2013 production in the Gulf of Mexico Deepwater and Shelf was 9,167 Boe per day and 2,658 Boe per day, respectively.
- During the quarter, a second well was spud at MP 295 off structure to attempt to establish downdip limits and assess reserve size. Previously, the Fieldwood-operated Heron well (MP 295 #1 BP) reached total depth and found over 100 feet of total pay (approximately 90 feet of oil pay) in several sands which were all full to base (8,400 feet – 16,500 feet total vertical depth).
- In October 2013, Apache combined the Deepwater and Shelf regions to form the Gulf of Mexico Offshore Region.
LUCIUS DEVELOPMENT (11.7 percent APA)
- During the quarter, installation of the Lucius spar hull was completed, with the 80,000 barrels of oil per day topsides expected to be towed to location in the first half of 2014.
- Lucius is progressing on schedule toward first oil production late in the second half of 2014 at 10,000 Boe per day net to Apache's interest.
HEIDELBERG (12.5 percent APA)
- Construction on the Lucius look-a-like Heidelberg spar is more than 70-percent complete.
- Development drilling is scheduled to begin in the first quarter of 2014.
- Initial production is expected in 2016 at 10,000 Boe per day net to Apache’s interest.
Apache Gulf of Mexico Offshore Region Acreage and Key Projects