Apache announces North Sea discoveries totaling 50-70 MMboe
HOUSTON -- Apache Corp. has announced significant discoveries on two exploration wells in the Beryl area of the UK North Sea. The company also drilled two significant development wells in the Beryl area, from which no reserves have been previously booked. Additionally, Apache has announced a large discovery at its Seagull prospect, which lies approximately 50 miles south of the company's Forties field, the largest oil field in the UK North Sea.
The K and Corona wells are the first exploratory prospects drilled by Apache in the Beryl area. Each discovery proves a separate geologic concept that helps to de-risk additional drilling locations. Apache estimates the K and Corona discoveries, combined with the success at Seagull, represent likely net recoverable reserves of 50 MMboe to more than 70 MMboe. Future appraisal drilling will enable the company to further define the upside potential beyond 70 MMboe. Apache's proved reserves in the North Sea at yearend 2014 were approximately 140 MMboe.
"Apache's exploration program in the high-potential Beryl area is off to an exceptional start. The success of our first two exploration wells at Beryl, combined with the Seagull discovery, could increase our total North Sea proved reserve base by more than 50%. Importantly, results obtained from the wells announced today emphasize the quality of our seismic surveys and the accuracy of our geologic model in the Beryl area," Thomas E. Voytovich, Apache's executive V.P., international and offshore and E&P technology, said. "Our large discovery at Seagull will likely have a longer investment time-horizon as it may require dedicated production facilities, but it is expected to have a very meaningful impact on Apache's medium- and long-term production in the region."
“These discoveries further reinforce our confidence that our North Sea business has the ability to sustain production volumes, extend the Forties and Beryl productive lives out beyond 2030 and consistently provide significant free cash flow back to the corporation," John J. Christmann, IV, Apache's CEO and president, said.
