On Jan 30, 2014, upstream operator Apache Corporation (APA) announced its success at drilling ventures and new field discoveries in Egypt.
Apache successfully completed the deepest well, the NRQ-8X (drilled to 19,322 feet), in Western Desert. Also on the completion list was the AG-115H well in the Abu Gharadig Field, the first of an 8-well horizontal drilling project. The well required an investment of $6.5 million and generated an average output of 1,681 barrels of oil and 3 million cubic feet (MMcf) of gas per day. With this addition, the Abu Gharadig Basin assets resulted in record production of 55,214 barrels of oil equivalent per day (Boe/d) in December. The company informed that it has 27 operational rigs in the Western Desert and foresee substantial growth opportunities in the region.
Apache applied for two additional leases as a result of the successful finds in the North Tarek and Khalda Offset regions. The discovery at the Khalda Offset Concession –Apries-1X – cost about $5 million and confirmed 4,389 barrels of oil and 14.2 MMcf of gas per day when tested. The North Tarek Concession well – NTRK-H-1X – required about $7 million investment and resulted in 20 MMcf of gas and 250 barrels of condensate per day.
Apache also continue to work on the development of the Meghar Field, which was found in 2012. It completed three development wells in the field during the latter half of 2013. The company tasted success at other ventures as well including the SWAG-8 development well in the Southwest Abu Gharadig Field, the SIWA 2-L2 well in the Siwa Concession and the TAYIM-W3 well in the West Kalabsha Concession.
With the success of the drilling ventures in the Faghur basin – the Siwa Concession and the TAYIM-W3 well – Apache expanded its facilities at the West Kalabsha Concession. The first quarter of 2014 is expected to see an increase of 4,500 barrels of oil per day as a result of the expansion.
Houston, Texas-based Apache currently carries a Zacks Rank #3 (Hold). Meanwhile, one can consider some better-ranked players from the same industry such as Athlon Energy Inc. (ATHL), Linn Co, LLC (LNCO) and Clayton Williams Energy, Inc. (CWEI). All these stocks currently sport a Zacks Rank #1 (Strong Buy).
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