Apache Makes Oil Discovery in the North Sea

Published at 02:34PM - 03/11/16

Apache Corp has confirmed its “third consecutive exploration success” near the Beryl field in the UK section of the North Sea.

The company announced an oil find in two separate fault blocks at the recently drilled Storr prospect in its third quarter results.

“Results were in line with pre-drill estimates and underscore the benefits of recent vintage 3D seismic data and the long-term exploration potential in the Beryl area,” the company informed in a statement.

Apache Makes Oil Discovery in the North Sea

The Storr prospect was drilled using Awilco Drilling’s semi-submersible drilling rig WilPhoenix.

The rig had arrived at location in June 2016 after Apache and Awilco settled their disagreements related to the rig’s preparedness to operate.

Apache Makes Oil Discovery in the North Sea
The Apache Beryl Alpha platform in the North Sea

In its third quarter report, Apache noted that oil production in the UK North Sea averaged 62,000 barrels of oil equivalent (boe) per day over the period.

This represents a significant decline compared to the second quarter of the year, mainly as a result of maintenance and third-party facility downtime.

Apache Confirms Significant Discoveries

The company added that its capital expenditure for the year remains in line with its guidance of US$2 billion (£1.6 billion).

“Our exploration success and financial results in the third quarter demonstrate the transformation that is taking place at Apache,” Apache’s CEO and president, J. Christmann IV, said.

“We believe long-term shareholder value is created by living within our means, protecting our strong financial position and organically building high-quality drilling inventory,” he added.

Over the period, the company also confirmed the discovery of significant resources at Alpine High in the Delaware basin.

Overall, Apache delivered a third quarter production of 520,000 barrels of oil equivalent (boe) per day and adjusted production of 438,000 boe per day.

For the near future, the company plans to raise development drilling in the Midland basin with the addition of three rigs in the fourth quarter.