Apache reports work in three Argentine basins

Apache Corp., Houston, reported progress in its operations in Argentina, where it has positions in the Neuquen, Austral, and Cuyo basins.

Jun 18th, 2009

By OGJ editors
HOUSTON, June 18
-- Apache Corp., Houston, reported progress in its operations in Argentina, where it has positions in the Neuquen, Austral, and Cuyo basins.

Argentina, where 72 of the 83 wells Apache drilled in 2008 were productive, holds 5% of the company’s net proved reserves and 9% of its production. Net production averaged 47,600 boe/d in the quarter ended Mar. 31, down 4% from the last quarter of 2008 even though liquids output didn’t decline.

In the Neuquen basin, Apache finalized the extension of eight federal development blocks that cover 590,000 acres and produce 7,000 b/d of oil and 100 MMcfd of gas. The government extended the lease 10 years to 2027. Apache has a capital commitment of $320 million on the lease.

Apache drilled nine wells in Ranquil and Guanaco deep gas fields that tested 3-7 MMcfd/well in the quarter ended Mar. 31

In the Austral basin, Apache plans to drill two development wells near its Bajo Guadaloso X-2001 discovery, which tested 2.4 MMcfd of gas and 300 b/d of oil. The 2-km feature is a look-alike to several structures identified on a 2,500 sq km 3D seismic survey shot in 2008.

Apache is operator with 70% working interest in San Sebastian field, the newly discovered Seccion Veintinueve field, and an extension to Sara Norte field.
Meanwhile, Apache plans to shoot two large 3D surveys once permitting is completed in mid-2010 in the Cuyo basin, where it was awarded more than 1 million sparsely drilled, nonproducing net acres that surround 22 of Argentina’s largest oil fields.

The CCyB Block 17B in Mendoza Province is next to and on trend with several fields and hasn’t been explored with 3D seismic. It is the company’s first acreage in the basin.

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