Apache Commences Production From Balboa (East Breaks 597), Its First Operated Deepwater Development in the Gulf of Mexico
HOUSTON, Jan. 6, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that hydrocarbon production has begun at its Balboa Field, located on East Breaks Block 597. Initial gross flow rates have stabilized at approximately 30 million cubic feet of natural gas and 1,400 barrels of oil per day. Apache's subsidiary is the operator of the field and holds a 50 percent working interest.
Balboa is located in estimated water depths of 3,350 feet approximately 130 miles south of Galveston, Texas. The field is a one-well development with a six-mile tieback to the Anadarko-operated Boomvang spar on East Breaks 643. The reservoir features oil-bearing sandstones with a natural gas cap. The well has been completed near the crest of the structure to optimize overall hydrocarbon recovery. This completion was designed to initially produce natural gas and liquids with increasing liquids and decreasing gas volumes throughout the life of the field.
"Subsea tieback technology has significantly improved the economics for deepwater developments by lowering the threshold for commercial accumulations," said John Crum, co-chief operating officer and president -- North America. "Through acquisitions completed in 2010, Apache now has both the capability in-house and the portfolio of properties in the deepwater Gulf of Mexico to exploit assets such as Balboa and add shareholder value."
Apache assumed operatorship of Balboa with the acquisition of Mariner Energy in November 2010. The field commenced production on Dec. 28, 2010.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates, investor information and all press releases, on its website, www.apachecorp.com.
This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and a number of factors could cause actual results to differ materially from projections, anticipated results or other expectations expressed in this news release, including Apache's drilling risks, and the ability to execute on production and development plans. We assume no duty to update these statements as of any future date. However, readers should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.
SOURCE Apache Corporation