Egypt grants Western Desert concessions

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Apache Corporation has announced that Egypt's Ministry of Petroleum has finalised the extension of the Khalda Offset and East Bahariya concessions in the Western Desert. The extensions will permit Apache to continue its exploration program across approximately 1.5mn acres.

Apache has also announced the West Kanayes E-1X discovery on a concession adjacent to Khalda Offset in the Matruh Basin. The well tested at an aggregate rate of 17mn cubic feet (MMcf) and 1,960 bpd from 80 feet of net pay in three zones in the Jurassic Alam el Buieb (AEB-6) formation.
"The West Kanayes E-1X extends AEB production eastward about four 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 maximise liquids production during the time when our gas-handling capacity is facilities-constrained."
Two additional exploratory wells are planned in 2010 for West Kanayes, where Apache is operator and has a 100 per cent contractor interest. The Khalda Offset and East Bahariya concessions are among 22 operated by Apache in joint ventures with the Egyptian General Petroleum. At Khalda Offset, the new agreement extends the exploration phase through to July 2016.
Apache committed to drill at least 10 wells with a minimum capital commitment of US$45mn along with a signature bonus of US$35mn.
The agreement covers 367,819 hectares. At East Bahariya, the new concession agreement extends the exploration phase through July 2012.
Apache committed to drill at least three wells with a minimum financial commitment of US$10mn and a signature bonus of US$4mn. The agreement covers approximately 367,819 hectares.

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