Apache Permian play also includes huge gas field

Fuel Fix:
The Houston-based oil exploration company Apache has made a significant discovery in West Texas’s Permian Basin, estimated at 75 trillion cubic feet of natural gas and more than 3 billion barrels of oil — nearly the equivalent of an entire year of U.S. crude production, the company announced on Wednesday.

The new field sits in the southern portion of the Delaware Basin, the Permian’s western and southern half. It is primarily in Reeves County, south of New Mexico, near the Davis Mountains. Apache is calling the field the “Alpine High.”
Apache also said its oil estimates are for the deep Barnett and Woodford formations alone. It expects there is also “significant” oil potential in the shallower Pennsylvanian, Bone Springs and Wolfcamp formations.

The company has drilled 19 wells and identified 2,000 to 3,000 future drilling locations in the Woodford and Barnett alone, expected to deliver a combination of rich gas and oil worth $4 million to $20 million per well at $3 per million cubic feet in gas and $50 per barrel of oil.

It expects well development for a 4,100 foot lateral to cost $4 million to $6 million
With that kind of production and activity, that area of Texas will no longer be confused with a moon landing site.   Actually, it is one of the more attractive desert areas of the Southwest.  It is somewhat remote and the Interstate speed limit out there is 80 MPH.

Apache has been an active drilling company for decades and it appears to have weathered the ups and downs better than some.


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