Quality and thickness of reservoir better than expected, so could easily exceed high side estimates:
HOUSTON, April 4, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that its subsidiary's Zola-1 discovery in license WA-290-P, offshore Western Australia, logged 410 feet of net pay in three Triassic Mungaroo sands over a depth range of 13,450-15,100 feet below sea level. Logging tools and formation pressure tests confirmed at least two separate natural gas columns with excellent reservoir characteristics.
Zola-1 is located in the Carnarvon Basin 60 miles north-northwest of Onslow, Western Australia, in water depths of 930 feet. The discovery is on trend with the Gorgon gas field 16 miles to the north and near both existing and developing gas infrastructure.
"Zola is a very encouraging result for Apache," said Thomas M. Maher, Apache's region vice president and managing director in Australia. "Although it is too early to speculate on reserve size, the quality and thickness of the reservoir is better than we expected. After we finish operations on the Zola-1 well, Apache will begin discussing the way forward ? including appraisal drilling and development options ? with our partners."
A new seismic survey covering the Zola structure is planned later in 2011.
TAP Price at posting:
$1.13 Sentiment: Buy Disclosure: Held
