Analyst question results of Apache test wells in 'Alpine High'
Shares of Apache Corp. fell in early trading on Tuesday after releasing well results from its new West Texas discovery, Alpine High, which some analysts viewed as disappointing.I think it is much too early to question the value of the field as a whole. I suspect they will refine their operations to get more out of the ground as they continue their exploration.
The Houston-based company announced in September the new oil field, which stretches largely across the bottom of Reeves County, near Balmorhea State Park. Apache estimated Alpine High contained at least 15 billion barrels of oil and gas, one of the largest discoveries in recent years. Analysts, however, were skeptical: Several other companies had tried drilling in the region and found little oil.
On Tuesday, Apache chief executive John Christmann revealed new Alpine High details at the annual Credit Suisse Energy Summit in Vail, Colo. The company has confirmed oil and gas in five geologic formations, each with multiple targets. They’ve drilled new well locations that stretch south and west into Pecos County. And the reservoirs are “over-pressured,” the Christmann said, meaning they will more easily produce oil and gas.
But analysts pointed out that initial production in the new wells was not as strong as in earlier wells.