Apache's bid round successes fuel exploration in UK, Suriname
Friday, Nov 02, 2012
HOUSTON, Nov. 1, 2012 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) said today that it has been awarded petroleum exploration acreage that will provide opportunities to find new resources near its core operations in the United Kingdom sector of the North Sea as well as a new entry in the Equatorial Margin play fairway offshore of the Republic of Suriname.
"Adding acreage to bolster Apache's drilling inventory in the North Sea and securing a high-potential exploration area offshore Suriname illustrate Apache's commitment to adding production and reserves through the drillbit," said Rodney J. Eichler, Apache's president and chief operating officer.
In the North Sea, the UK Department of Energy & Climate Change awarded 11 new licenses to Apache as operator and a nonoperated interest in one additional license. The licenses cover 19 full or partial blocks (613,316 gross acres or 2,482 square kilometers). Apache agreed to drill six wells and acquire a new 3-D seismic survey.
"This was a very successful outcome that will provide avenues for continued growth near our major producing assets as well as high-potential exploration targets in the Central Graben area of the North Sea," said James L. House, vice president and managing director of Apache's North Sea Region. "We obtained all of the available acreage around our Beryl Field plus a key license near the Forties Field."
The economic prospectivity of these areas was enhanced by recent improvements in the UK tax allowance schemes involving small fields and high-pressure, high-temperature fields, House said.
Apache plans to acquire its third 4-D seismic survey over the Forties area in 2013 since becoming the operator in 2003 and complete the remaining 560 km2 of a new 1,500 km2 3-D survey in the Beryl area in 2013 that was started this summer. This will be the first new 3-D seismic survey acquired over the Beryl complex since 1997.
In Suriname, Apache signed a production sharing agreement with Staatsolie Maatschappij Suriname NV – the national oil company – for Block 53, a 867,117-acre (3,509 km2) area located in 1,640-5,900 feet (500-1,800 meters) of water about 80 miles (130 km) offshore.
Apache agreed to a work program that includes a 3-D seismic program expected to begin in 2013 and two exploration wells. Apache has a 100-percent participating interest in the block. Staatsolie has an option to obtain a 20-percent participating interest in commercial fields discovered on the block.
"Block 53 is on trend with the large Zaedyus discovery offshore French Guiana -- an indication that the Equatorial Margin play fairway may extend to the west side of the Atlantic Ocean," said Tim Chisholm, director of Apache's New Ventures activities in the Americas. "Apache was selected after a competitive bid round involving companies with proven international exploration track records."
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "forecasts" and similar references to future periods. These statements include, but are not limited to, statements about Apache's ability to execute on exploration, production and development plans in the UK North Sea and Suriname. While forward-looking statements are based on our assumptions and analyses that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties that could cause our actual results, performance and financial condition to differ materially from our expectations. See "Risk Factors" in our 2011 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.