Texas company finds another huge shale play in Permian Basin
San Antonio Express-News:
Apache Corp. says it made a “significant” discovery in a Texas shale formation that holds enough crude oil to supply every refinery on the U.S. Gulf Coast for a year.This find is another blow to OPEC. More companies are turning to the Permian Basin because it the production cost there is lower than the current price of oil. Much of the Permian Basin is funding the Texas Permanent University Fund giving schools like the University of Texas one of the largest endowments in the world.
The Alpine High discovery in West Texas contains an estimated 3 billion barrels of oil and 75 trillion cubic feet of natural gas, Apache said in a statement on Wednesday. The asset is in the Delaware Basin, a subsection of the Permian Basin that has been a hotbed of acquisition activity among oil explorers this year.
Shares of Apache rose 7.9 percent to $55.74 at 8:34 a.m. before the start of regular trading in New York.
“This is a world class resource,” Chief Executive Officer John Christmann told investors at a Barclays conference in New York on Wednesday. “We are very early in starting to understand how big this is going to be.”
Apache amassed drilling rights across 307,000 contiguous acres in the region at an average cost of $1,300 per acre, according to the statement. The Houston-based company already has drilled 19 wells in the area and has identified 2,000 to 3,000 more drilling sites.