Apache also revealed the West Kanayes E-1X discovery on a concession adjacent to Khalda Offset in the Matruh basin. The well tested at an aggregate rate of 17 million cubic feet and 1,960 barrels of oil per day from 80ft of net pay in three zones in the Jurassic Alam el Buieb (AEB-6) formation.
Tom Voytovich, vice president of Apache’s Egypt region, said: “The West Kanayes E-1X extends AEB production eastward about four miles from production in Khalda Offset and into the sparsely drilled West Kanayes concession. With the high oil rate encountered in the upper zone, this well will be produced to maximize liquids production during the time when our gas-handling capacity is facilities-constrained.”
Two additional exploratory wells are planned in 2010 for West Kanayes, where Apache is the operator and has a 100% contractor interest. The Khalda Offset and East Bahariya concessions are among 22 operated by Apache in joint ventures with the Egyptian General Petroleum.
At Khalda Offset, the new agreement extends the exploration phase through July 2016. Apache committed to drill at least 10 wells with a minimum capital commitment of $45m along with a signature bonus of $35m. The agreement covers 908,900 acres.
At East Bahariya, the new concession agreement extends the exploration phase through July 2012. Apache will drill at least three wells with a minimum financial commitment of $10m and a signature bonus of $4m. The agreement covers approximately 673,800 acres.
