Exploration & Production | Drilling / Well Results

Apache Plans Massive Eagle Ford Shale Development In 2Q

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   |    Monday,June 09,2014

Apache Corp. has provided the following update during its most recent investor call.

"In our Gulf Coast region we saw some very encouraging results from our Eagle Ford acreage. Earlier this year at our investor day we outlined our 500,000 gross acreage position in the northern part of this play. We’re continuing to progress on stranding [ph] of the area despite nine additional wells during the quarter, our most recently completed well was McCullough-Wineman in Brazos county which 30- day IP averaged 1,455 barrels of oil equivalent a day well above our initial type curve.

Based on this recent well result, and our overall understanding of the play, we plan to increase our rig count from four currently to eight by midyear. In the division we’re driving costs down in the play and are currently working to reconfigure our wells to further enhance our returns."

"In the Eagle Ford and starting off the year based on what we have learned over the – really the last four months, we have an opportunity to ramp that up. I think I mentioned in my prepared remarks, we’re going to go to from four rigs to by the middle of the year to 8 rigs there."

Michael Hall - Heikkinen Energy: "I'm just curious on the good result you've been seeing there in the Eagle Ford, what are the hydrocarbon mix splits on those wells? And do you think you're stimulating the chalk at all with those? And what are the cost running on them?"

Steve Farris: "With respect to the mix, that well I mentioned made about 730 barrels for condensate for the rest of the year. So it’s about 60:40 liquids to gas. With respect to cost, I don’t know – well costs, -- we’ve just redesigned our Eagle Ford wells, we think we can take about $1.2 million off the well design that we’ve got right now. I am hopeful we can take more than that out of it. As you go into pad drilling and you go into manufacturing mode, you can really bring your cost down, we have shown that at Bernhard [ph] area, we’ve seen that honestly – we start off drilling wells $16 million and today they are under 7. So we expect those costs to come down significantly."

Source : Apache (May 28, 2014) , Shale Experts Presentation Database

Source : Apache (May 28, 2014) , Shale Experts Presentation Database

Source : Apache (May 28, 2014) , Shale Experts Presentation Database