Appraisal confirms Apache discovery in Egypt's Khalda Offset

Apache Corporation says the Neith S. 3X appraisal of its 2,634 b/d 1X discovery earlier this year has confirmed the presence of commercial hydrocarbons on the Khalda Offset Concession in Egypt's Western Desert. A declaration of commerciality for the Khalda Offset Concession has been requested, which, when approved, will enable Apache to begin recouping prior expenditures of approximately US$40 million out of existing production on the adjacent Khalda Concession. A declaration of commerciality also would provide a mechanism for recovering further drilling costs on Khalda Offset.

The 3X tested at a rate of 1,170 b/d of 44-degree API crude oil and 1.3 million cf/d of gas on a two-inch choke with 100 psi of flowing tubing pressure. The test was conducted in the Khatatba sandstone from perforations between 14,406 ft and 14,456 ft in the Neith South Field.

Apache has a 40% contractor interest in the well. Repsol, the operator, holds 50% and Novus holds the remaining 10%. The 3X is located approximately nine miles away from existing facilities where there is spare capacity to process and export additional oil production.

The 1.575 million-acre Khalda Offset Concession is located approximately 267 miles west of Cairo. It is adjacent to the prolific Khalda Concession, which comprises approximately 318,000 acres and is Apache's single most prolific producing area. Khalda's current gross production averages approximately 43,000 b/d of oil and condensate and 200 million cf/dof gas.

Edited by Dev George
Managing Editor, Oil and Gas Online