Apache reports drilling success in Kaybob Dunvegan by Alison Sider, November 20, 2012, Market Watch
Apache Corp. APA -1.69% announced that its results using hydraulic fracturing to recover oil from a 40-year-old field northwest of Calgary were promising and it has plans to continue developing the field. The company reported that two of its development wells in Canada’s Kaybob Dunvegan play tested at rates of 300 and 280 barrels of oil per day. Apache said it has found more than 2,000 potential drilling locations in its 238,000 acre leasehold there. “These wells were drilled in areas which have been producing for over 40 years but which have the potential to be completely rejuvenated through the application of horizontal drilling and multistage hydraulic fracturing,” said Tim Wall, president of Apache Canada. RW Baird analysts wrote in a client note Tuesday that more information is still needed about the play. “Given limited initial results, the play likely requires additional data and perhaps some bigger wells before the Street is willing to assign full credit,” the analysts wrote. [Emphasis added]
Apache Reports Horizontal Drilling Successes in Canada’s Kaybob Dunvegan Play Press Release by Apache Corporation, November 20, 2012
HOUSTON, Nov. 20, 2012 /PRNewswire/ — Apache Corporation (NYSE, Nasdaq: APA) today announced promising drilling results in the Dunvegan oil reservoir in the Kaybob development area inAlberta, Canada. Kaybob is a prolific area located 310 miles (500 km) northwest of Calgary that contains 16 known productive horizons; the Dunvegan play is one of the primary targets. The most recent of four Kaybob Dunvegan development wells – the 1-35 – tested at a rate of 300 barrels of oil per day (bopd). The well was drilled to a vertical depth of 5,700 feet (1,732 meters) with a 4,300-foot (1,319-meter) lateral and a 13-stage fracture stimulation completion. The first well in the campaign – the 1-9 – tested at a peak rate of 280 bopd. It was drilled to a vertical depth of 5,500 feet (1,676 meters) with a 4,900-foot (1,490-meter) lateral and 13 fracture stages.
“These wells were drilled in areas which have been producing for over 40 years but which have the potential to be completely rejuvenated through the application of horizontal drilling and multi-stage hydraulic fracturing,” said Tim Wall, president of Apache Canada. “These encouraging results have contributed to identifying more than 2,000 potential horizontal drilling locations across our 238,000-acre gross (179,000-acre net) leasehold.” The Dunvegan is a widespread, high quality Upper Cretaceous sandstone reservoir. A 13-stage horizontal well is expected to recover an estimated 560,000 barrels of oil equivalent. Longer term, the Dunvegan represents a good candidate for additional production by means of secondary recovery. “Apache’s leading acreage position in the Kaybob area is another example of the richness of our portfolio,” Wall said. “Like other Apache regions, we are focused on growing through the drill bit in oil- and liquids-rich-gas plays with a significant backlog of drilling locations in a number of stacked pay areas.” [Emphasis added]