U.S. energy firm
) recently reported an oil and gas-condensate discovery on the
north flank of the Khalda Ridge producing complex in the Western
desert of Egypt.
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The Amoun NE-1X well was tested at a combined rate of 3,186
barrels of oil and condensate along with 11 million cubic feet of
natural gas per day from two zones in the Jurassic-aged upper and
lower Safa formations. This was the first well drilled by Apache
among the 270 planned for Egypt this year.
The well was drilled to a total depth of 14,028 feet and
encountered 50 feet of oil pay in three Cretaceous Alam el Buieb
(AEB-3) sands and 101 feet of pay in the Jurassic Safa sands. The
total cost of drilling and completing the well came at $4.2
Apache also drilled 2 wells successfully in Abu Gharadig basin -
WD 33-5 well in WD 33 Development Lease and Karama-15 well in the
Karama Development Lease.
WD 33-5 was tested at a rate of 2,324 barrels of oil and 600
thousand cubic feet of gas per day from the Abu Roash E
reservoir. Its completion cost came in at $3.65 million.
Moreover, Karama-15 was tested at 2,136 barrels of oil per day
from the Abu Roash G reservoir. The cost of the same was $2.1
With the success of the current exploration and development
program in Egypt, Apache is on an expansion path. It looks
forward to more such opportunistic programs in 2013 to gain a
significant market share in Egypt. We believe such
accomplishments will garner profits for Apache in the upcoming
Apache currently carries a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next 1 to 3 months.
Meanwhile, there are other energy explorers that offer value and
are worth buying now. These include
Range Resources Corp.
) with a Zacks Rank #1 (Strong Buy) as well as
Memorial Production Partners LP
), each with a Zacks Rank #2 (Buy).