Egypt Western Desert concessions extended

By OGJ editors
HOUSTON, Feb. 23 -- Egypt’s Ministry of Petroleum extended Apache Corp.’s Khalda Offset and East Bahariya concessions in the Western Desert through July 2016 and July 2012, respectively.

Apache committed to drill at least 10 wells on Khalda Offset with a minimum $45 million capital outlay and $35 million signature bonus. The concession covers 908,900 acres. It committed to drill at least 3 wells on East Bahariya with a minimum $10 million in spending and $4 million signature bonus. The concession covers 673,800 acres.

Based on 2009 exploration success in and around the newly extended concessions, Apache has accelerated 3D seismic surveying and planned a full slate of exploratory drilling.

The most recent discovery, West Kanayes E-1X in the Matruh basin on a concession adjacent to Khalda Offset, tested a combined 17 MMcfd of gas and 1,960 b/d of condensate from 80 ft of net pay in three zones in the Jurassic Alam el Buieb (AEB-6) formation.

The discovery extends AEB production eastward about 4 miles from production in Khalda Offset and into the sparsely drilled West Kanayes concession, said Tom Voytovich, vice-president of Apache’s Egypt region.

“With the high oil rate encountered in the upper zone, this well will be produced to maximize liquids production during the time when our gas-handling capacity is facilities-constrained,” Voytovich said.

Apache, operator of West Kanayes with 100% contractor interest, plans two more exploratory wells in 2010.

Khalda Offset and East Bahariya are among 22 concessions operated by Apache in joint ventures with Egyptian General Petroleum Corp. Apache, the largest producer and most active explorer in the Western Desert, had gross production of 175,000 b/d of oil and 752 MMcfd of gas in the last quarter of 2009. Net production was 96,000 b/d and 383 MMcfd.