Drilling & Completions | Well Cost | Drilling / Well Results | Quarterly / Earnings Reports | First Quarter (1Q) Update | Capital Markets | Capital Expenditure | Drilling Activity | Drilling Program-Rig Count
Apache's Permian Output Jumps 36% YOY; Touts Alpine High Cost Reductions
Apache Corp. reported its Q1 2019 results. Here are the highlights from its report and presentation.
- In Q1, the company invested $597 million in upstream capital and remains on track for $2.4 billion for the year. Its production growth expectation of 6-10% from Q4 2018 remains unchanged.
Q1 Production: Record Permian Output (Up 36% YOY)
- Q1 Production: 503,000 BOEPD - up 19% YOY
- Achieved U.S. production of 292,000 BOE per day, exceeding guidance by 5,000 BOEPD, and reached record Permian Basin production of 248,000 BOEPD - this is up 36% YOY
- Achieved International reported production of 211,000 BOEPD
John J. Christmann IV, Apache's CEO and President, said: “In the Permian Basin, we grew 5 percent quarter over quarter and maintained oil production near fourth-quarter levels, despite placing one of our two completion crews on a frac holiday for the entire first quarter. At Alpine High, where we also had a relatively low number of completions, production was up significantly from the fourth quarter and was in-line with our guidance of 70,000 BOE per day.
“International production grew 6 percent compared to the fourth quarter and benefited from high facilities uptime across our operations, strong early production rates from two new wells in the North Sea, and a continuation of good results from our revamped waterflood program in the Forties Field."
Alpine High D&C Costs Down; Expects Further Improvements
The company continues to make significant progress on drilling and completion costs in the play and has delivered a 20% and 32% reduction, respectively, from 2017 averages for the quarter.
Further improvements are expected as Alpine High moves further into development and optimization mode.
Rig & Drilling Activity
United States – U.S. production averaged 292,000 BOE per day. The company averaged 16 rigs and drilled and completed 39 gross-operated wells.
In the Permian, Apache averaged 14 rigs and drilled and completed 39 gross-operated wells.
- Midland Basin – During the quarter, the company drilled and completed 18 gross-operated wells and maintained production despite significantly fewer wells placed online compared to the previous quarter.
- Delaware Basin – Apache’s activity in the Delaware Basin currently includes operations in Alpine High, Dixieland, and Pecos Bend in Reeves County and the slope play in southeast New Mexico.
- Alpine High - Production in the first quarter averaged 70,000 BOE per day, a 165-percent increase over the first quarter of 2018. During the quarter, the company drilled and completed 17 gross-operated wells.
- Outside of Alpine High in the Delaware Basin, four new wells were placed online during the quarter.
International Highlights
Egypt – Apache averaged 10 rigs during the quarter and drilled and completed 23 gross-operated wells with an 83-percent success rate. Adjusted production in Egypt, which excludes noncontrolling interest and the impact of tax barrels, averaged 79,000 BOE per day. As a result of recently awarded concessions and the company’s ongoing broadband seismic acquisition program, Apache has added several hundred new leads and prospects in the region.
North Sea – Apache averaged 3 rigs during the quarter and produced 66,000 BOE per day, the highest quarterly production in two years. Strong production levels were the result of a full quarter of production from Garten, a new development well at Callater and strong uptime on producing facilities for the quarter.
Related Categories :
First Quarter (1Q) Update
More First Quarter (1Q) Update News
-
Large Permian E&P Talks 1Q'24; 282 Wells Planned for 2024 -
-
CNX Resources Cut Frac Activity 50%, Talks 1st Quarter Activity -
-
Large E&P To Defer Completion Activity, Build DUCs -
-
Operator Reports 1Q'24 Results; Chop Frac Plans Again -
-
Range Resources Talks 1Q Results; 2024 Wells Plan Unchanged -
International News >>>
-
Oilfield Services Talk What To Expect In Remainder of 2024 -
-
Large Permian E&P Talks 1Q'24; 282 Wells Planned for 2024 -
-
Seventeen (17) E&Ps; To Use 47 Frac Crews To Complete 2,800 Wells In 2024
-
These Permian Operators Plan to Complete/Frac 2,100 Wells IN 2024
-
Large E&P Chops Permian/Anadarko Basin Frac Activity by 30% In 2024
North Sea News >>>
-
Permian E&P Ups 2024 Well Completed by +27% vs. 2023
-
Contrary to The Noise, U.S. Oil Production will Likely Growth 4-5% In 2024; A look Inside -
-
New Permian E&P Company Score Capital; On The Hunt For Assets -
-
Chevron To Cut D&C Activity in U.S. Shale In 2024; Here is Where. -
-
An Early Look at Company 2024 Capital & Development Plans