Apache's Qasr-2X appraisal well in Egypt's Western Desert confirms significant discovery

By OGJ editors

HOUSTON, Nov. 5 -- Apache Corp. said Wednesday its Egyptian Qasr-2X appraisal well confirmed the Qasr-1X discovery announced in July: "the most-significant gas discovery in the Western Desert in the last decade. It establishes [the area] as an important hydrocarbon province well into the 21st Century," Apache Pres. and CEO G. Steven Farris had said then (OGJ Online, July 8, 2003).

Qasr-2X, which is 1.6 miles from Qasr-1X, has "a 707 ft gross hydrocarbon column, and logs indicate that net Jurassic pay in the Qasr-2X increases to 669 ft, vs. 461 ft in the Qasr-1X discovery," said Farris.

"We believe the importance of these two wells extends to the well-being of Egypt while appearing to be the most significant in Apache's 49-year history," he reiterated. "Reserve potential is now in the range of 1-3 tcf of gas and 20-70 million bbl of condensate."

The new field is located on the Khalda Concessions, which Apache operates with a 100% contractor interest. Based on 3D seismic data, the area potentially encompasses more than 13,000 acres. Apache plans to drill four more appraisal wells which will enable it to better define potential reserves and determine pipeline and gas processing infrastructure requirements. An additional 62 ft of pay was logged at more shallow depths in the AEB sands, which produce oil in Ozoris field 2.4 miles northeast of Qasr-2X.

Apache expects to begin production within 2 weeks, Farris said, having recently completed a 6-in. pipeline that will accommodate 30 MMcfd of gas from the Qasr-1X discovery.

"We believe we have kicked off a new play for condensate-rich Jurassic gas, and we expect additional exploratory drilling and 3D seismic acquisition in the near future, he said.

Farris said that what they the company originally thought was a combination of Jurassic Lower Safa and Ras Qattara pay in the discovery well is actually all Lower Safa. Qasr-1X test-flowed a combined 51.8 MMcfd of gas and 2,688 b/d of condensate from flow tests in two zones in the Lower Safa formation. "We do not believe we have penetrated the Ras Qattara sands on this structure as of yet. Our net- to-gross in the Lower Safa sand package increased from 76% in Qasr-1X to 93% in Qasr-2X," he added.

Apache is evaluating whether to test the Lower Safa in light of the quality of the log and the current condition of the Qasr-2X wellbore. Any tests in the Lower Safa will be restricted by the diameter of the pipe.