Home

Apache sharply expands western Egypt acreage position

Feb. 10, 1997

Apache's New Western Desert Interests [59381 bytes] Apache Corp. became Egypt's second largest acreage holder with acquisition of Mobil Corp.'s nonoperating interests in three western desert exploration concessions covering a combined 7.7 million gross acres. Apache assumed a 50% contractor interest in the Repsol SA operated East Bahariya concession, a 33% contractor interest in the Repsol operated West Mediterranean Block 1 concession, and a 24% contractor interest in the Royal

Apache's New Western Desert Interests [59381 bytes]

Apache Corp. became Egypt's second largest acreage holder with acquisition of Mobil Corp.'s nonoperating interests in three western desert exploration concessions covering a combined 7.7 million gross acres.

Apache assumed a 50% contractor interest in the Repsol SA operated East Bahariya concession, a 33% contractor interest in the Repsol operated West Mediterranean Block 1 concession, and a 24% contractor interest in the Royal Dutch/Shell operated Northeast Abu Gharadig concession.

The concessions carry a total drilling obligation of 11 wells the next 3 years.

Four sub-basins

The deal took effect Jan. 16 with Egypt government approval.

It provides Apache a position in all four of the western desert's sub-basins: Shushan sub-basin in the Khalda area, Alamein sub-basin south of El Hamra, Abu Gharadig sub-basin south of Alamein, and Gindi sub-basin southwest of Cairo.

The acreage lies between Apache's Qarun and Khalda concessions, which were producing a combined 60,000 b/d in mid-January. Production is expected to exceed 70,000 b/d by mid-1997.

The transaction brought to 19.3 million the number of acres in which Apache holds an interest in Egypt (OGJ, Nov. 4, 1996, p. 96).

Mobil said the sale resulted from an unsolicited approach by Apache and was consistent with Mobil's strategy to continually optimize its global exploration portfolio.

Mobil has an aggressive exploration and development program in Nigeria, Equatorial Guinea, Cam- eroon, Algeria, and Angola. The Egypt deal does not affect Mobil Oil Egypt, the largest international downstream marketer in Egypt.