Reason #897 Why I Love To Blog -- Helps Put The Bakken Into Perspective -- April 1, 2015

Had I not been blogging on the Bakken all these years, this story would not have meant much to me. I probably wouldn't have read it in the first place, but that's another story.

I would not have read this story had it not been for the headline: new technology. I was curious what Apache's new technology was. Unfortunately, the article does not provide any insight.

Apache Corp over at Rigzone is reporting:

Five wells, including the discovery wells, have been completed to date by Khalda Petroleum Company, Apache's joint-venture company with EGPC. All five wells are producing without the need for fracture stimulation at a combined rate of more than 13,600 barrels of oil per day (bopd) with first production starting in November 2014. The wells have produced approximately 1 million barrels of oil to date. Apache has invested $14 million to install production facilities and plans to invest another $35 million to handle the forecasted production increase.

The Ptah field started producing light oil from the Paleozoic-aged Shiffah Formation in December 2014. This field also has substantial target zones logged in the AEB-3D/-3E formations that have yet to be tested. In the Shiffah, the field discovery well (Ptah-1X) is currently producing 2,350 bopd and a second well (Ptah-3X) started production in March 2015 at a rate of 2,000 bopd. Shiffah pay zones have averaged 130 feet while the AEB-3D/-3E formations yet to be completed have logged an average net oil pay section of 65 feet. Further appraisal drilling and AEB-3D/-3E production testing will be conducted with the Ptah-4X and Ptah-6 to further define the field size and reserves.

Drilling depth to the deeper Shiffah is approximately 13,800 feet, while the AEB-3D/-3E targets average a depth of 11,000 feet. Completed-well costs are expected to average around $3.7 million for Shiffah wells and $2.5 million for the AEB-3D/-3E wells.

So, some data points:

• Egypt
• two new oil fields discovered in the Western Desert: the Berenice and Ptah fields
• development leases approved by Egypt in record time: 13 days (Berenice); 6 days (Ptah)
• no need for fracture stimulation
• five wells: 13,600 bopd 
• pay zone: Shiffah formation, 130 feet (compare with Bakken formations of 4 - 30 feet)
• pay zone: AEB-3D/-3E, at least 65 feet thick on average
• drilling depth, Shiffah: 13,800 feet (compare to 9,000 for middle Bakken; deeper for TF)
• drilling depth, AEB-3D/-3E: 11,000 feet (comparable to deeper middle Bakken/TF wells)
• cost: Shiffah, $3.7 million; AEB, $2.5 million (compare to $6 million minimum for Bakken/TF wells)