Apache sees Egypt's Qasr field as world class

July 12, 2004
Qasr field in Egypt's western desert is one of the larger onshore hydrocarbon discoveries in the world in the last couple of years, said Apache Corp., Houston.

Qasr field in Egypt's western desert is one of the larger onshore hydrocarbon discoveries in the world in the last couple of years, said Apache Corp., Houston.

It is also the largest onshore gas discovery in the company's history, said Apache CEO and President Steven Farris.

Apache estimates it will ultimately recover 1-3 tcf of gas and 40-50 million bbl of condensate from Qasr, on the Khalda Offset concession (OGJ Online, Mar. 2, 2004). Apache operates Khalda with a 100% contractor interest.

Khalda covers nearly 2 million acres about 250 miles west of Cairo. The complex contains 24 oil and gas fields that produce from 58 sandstone reservoir units in seven formations at 5,000-16,000 ft.

Apache replaced 217% of its Egyptian production in 2003 on the strength of discoveries on several blocks, including Qasr, Alexandrite, Atoun, Emerald, JG-2, Matruh, and 13 discoveries at East Bahariya.

The company noted that Egypt's gas demand is 3 bcfd and has grown at a compounded 15%/year the past four years.

Most of the growth has come from power consumption, but even if electricity demand does not grow in the near term, two major projects demanding 900 MMcfd are expected to come on line by yearend 2005, the company said.

Recent appraisal

The Qasr-5 appraisal well extended the field to the southwest in late June, further confirming the field's overall seismic structure, Apache said.

Qasr-5 cut a 494-ft gross sand column with 484 ft of net pay and a similar gas-water contact seen in the prior three Qasr wells. It is the third successful appraisal well that has encountered a net productive sand column greater than 450 ft.

Qasr-5, 3.5 miles southwest of the Qasr-1X field discovery, tested at a rate of 53.5 MMcfd of gas and 1,739 b/d of condensate on a 11/2 in. choke with 1,800 psi flowing wellhead pressure. Apache perforated 104 ft of sand at the bottom of the Jurassic Khatatba sandstone reservoir at 13,510-44 ft and 13,410-80 ft.

Apache was drilling the Qasr-6 appraisal well in the far northwest extension of the field and planned to drill the Qasr-4 later this year to test the northeast extension.

Qasr-1X went on production in December 2003 at 10 MMcfd. Apache plans to begin significant deliveries from Qasr in 2005.

A 95-sq-mile development lease approved in January 2004 includes the Qasr area and two prospects to be drilled this year.