Apache Corporation (NYSE, Nasdaq: APA) has announced that after more than two years of extensive geologic and geophysical work, methodical acreage accumulation, and strategic testing and delineation drilling, the company can confirm the discovery of a significant new resource play, the 'Alpine High.' Apache's Alpine High acreage lies in the southern portion of the Delaware Basin, primarily in Reeves County, Texas. The company estimates hydrocarbons in place on its acreage position are 75 trillion ft3 (Tcf) of rich gas (more than 1300 British Thermal Units) and 3 billion bbls in the Barnett and Woodford formations alone. Apache also sees significant oil potential in the shallower Pennsylvanian, Bone Springs and Wolfcamp formations.
Key highlights of the discovery:
Apache has drilled 19 wells in the play, with nine currently producing in limited quantities due to infrastructure constraints. This includes six wells in the Woodford, one well in the Barnett and one well each in the shallower Wolfcamp and Bone Springs oil formations.
Alpine High play and its large inventory of repeatable, high-value drilling opportunities. We have thousands of low-risk locations in the Woodford and Barnett formations alone, and we are looking forward to further delineating what we believe will be a significant number of oil-prone locations in the Pennsylvanian, Wolfcamp and Bone Springs."
"Today's announcement is the culmination of more than two years of hard work by the Apache team. While other companies have focused on acquisitions during the downturn, we took a contrarian approach and focused on organic growth opportunities. These efforts have resulted in the identification of an immense resource that we believe will deliver significant value for our shareholders for many years," said John J. Christmann IV, Apache's chief executive officer and president. "We are incredibly excited about the Alpine High play and its large inventory of repeatable, high-value drilling opportunities. We have thousands of low-risk locations in the Woodford and Barnett formations alone, and we are looking forward to further delineating what we believe will be a significant number of oil-prone locations in the Pennsylvanian, Wolfcamp and Bone Springs."
In addition to providing details on Apache's Alpine High discovery, the company is also providing an update today on its Midland Basin and other Delaware Basin assets, including strong comparative well results and future drilling locations. This update can be found in the slide deck associated with today's Barclay's 2016 CEO Energy-Power Conference presentation, which is posted on the company's website at www.apachecorp.com and investor.apachecorp.com.
"Our announcement today represents a significant addition to our already deep and highly economic Permian Basin position. With the contribution of Alpine High to our global portfolio of world-class international and North American assets, Apache clearly has more profitable-growth opportunities than at any other time in the company's 60 year history," Christmann concluded.
2016 capital guidance update
To accelerate the delineation and development of the Alpine High play, Apache is increasing its 2016 capital spending by approximately US$200 million for the year and raising its full-year capital guidance to approximately US$2 billion. Capital spending on the Alpine High play in 2016 will represent more than 25% of Apache's total capital spending programme.
Apache CEO and President John J. Christmann IV will present today, Sept. 7, 2016, at 6:45 a.m. Central time at the Barclay's 2016 CEO Energy-Power Conference. The presentation and live webcast will be available on Apache's website at www.apachecorp.com and investor.apachecorp.com, and the webcast replay will be archived there as well.
For more information, please visit: http://www.apachecorp.com
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08092016/apache-discovers-significant-new-resource-play-in-southern-delaware-basin/