Apache’s (APA) recent success in the Beryl Field, located in the U.K.’s North Sea, saw initial production rates higher than any seen since 2001, at 11,625 barrels of oil and 13.1 million cubic feet of gas per day. Based on the success, Apache plans to conduct a new 3-D seismic survey on the field, which to me indicates that the production is much higher than initial expectations and is leading Apache to believe it is not an anomaly. Apache may have suspected that the previous owner of the leasehold where Apache found the new pay, Mobil North Sea Limited, a subsidiary of Exxon Mobil (XOM), was not fully extracting the field’s potential. Apache purchased its interests in the Beryl from Exxon Mobil just last year, along with interests in the Nevis/Nevis South, Ness, Skene, and Buckland fields. Apache is operator and 50% interest holder of the Beryl, with working interests held by Hess (HES), Enterprise Oil, and OMV U.K.
More Information on Varanus A Positive Indicator
On the heels of a major supply announcement by the Wheatstone natural gas project in Australia, in which Apache maintains a working interest, an Australian court ruled that documents completed by experts analyzing the causes of the 2008 Varanus Island gas plant explosion agreeing with Apache’s determination on the disaster can be publicly released. One version of the reports is already public; called the Bills-Agostini report, it accuses Apache of not taking action to prevent an incident that Apache suspected was possible.To continue reading, click here.