Apache Announces Oil Discovery Offshore Western Australia - Update

(RTTNews) - Oil and natural gas producer Apache Corp. (APA) Monday announced an oil discovery at Phoenix South-1 well, the company's first discovery in Australia's offshore Canning Basin, with preliminary estimates of around 300 million barrels of oil in place.

The Phoenix South-1 well is located in permit WA-435-P, offshore western Australia, 110 miles north of Port Hedland in 435 feet of water. Apache has a 40 percent interest and operatorship of WA-435-P and the adjacent permit WA-437-P.

In addition, the company has exercised its option to buy 40-percent interest and operatorship of two additional adjacent permits for a total position of over 5 million acres.

Apache noted that wireline and formation pressure tools have confirmed at least four discrete oil columns ranging in thickness between 85 and 151 feet in the Triassic Lower Keraudren formation, within an overall, sand-rich section between 13,648 and 14,763 feet below sea level.

According to Apache, evaluation of the formation penetrated in the Phoenix South-1 is under way. The final calculation of hydrocarbon pay will depend on additional analysis, the company said.

"The oil and reservoir quality we have seen point to a commercial discovery. If these results are borne out by further appraisal drilling, Phoenix South may represent a new oil province for Australia," said Thomas Voytovich, Apache's executive vice president and chief operating officer - International.

Last month end, the company reported a profit for the second quarter that halved from last year on lower revenues. Apache also reported a 15 percent decline in production for the quarter.

APA is currently trading at $98.18, down 0.51 percent.