Apache Corp. optimistic about Egypt's oil

U.S. energy explorer Apache Corp. said results of two recent oil discoveries in Egypt gave it optimism about the resource potential in the Western Desert. Apache said testing of the Jurassic Safa sand and Faghur Deep-1X wells yielded flow rates of 6,671 barrels of oil and 2.76 million cubic feet of natural gas per day. The Neilos-1X discovery had a test-flow rate of 4,179 barrels of oil and 4.2 million cubic feet of natural gas per day. Tom Voytovich, vice president of Apache's Egyptian region, said in a statement the basin had "prolific oil and gas production" that "demonstrates the multiple-pay potential of this area of the Western Desert."Apache in 2011 drilled 11 wells in the region that resulted in nine new field discoveries. Seven new exploration wells are planned for this year.Apache is producing 40,000 barrels of oil per day from the Faghur Basin. The company's gross operation production in Egypt sits at roughly 215,000 barrels of oil and 900 million cubic feet of gas per day.Apache last year paid $650 million to BP for Egyptian development leases.