Apache Makes First Oil Discovery at Canning Basin

Apache Corp. (NYSE:APA) announced its first oil discovery at Australia’s offshore Canning Basin. It was made at the Phoenix South-1 well.

As quoted in the press release:

Wireline and formation pressure tools have confirmed at least four discrete oil columns ranging in thickness between 85 and 151 feet (26 to 46 meters) in the Triassic Lower Keraudren formation, within an overall, sand-rich section between 13,648 and 14,763 feet below sea level (4,160 to 4,500 meters).

Six light oil samples have been recovered from three intervals to date; permeability measurements from the sampled zones indicate a productive oil reservoir with preliminary estimates that there might be as much as 300 million barrels of oil in place. Evaluation of the formation penetrated in the Phoenix South-1 is under way, and final calculation of hydrocarbon pay will depend on additional analysis.

Thomas E. Voytovich, executive vice president and COO – international at Apache, commented:

Although evaluation is at an early stage, Phoenix South-1 is an exciting result. 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. We look forward to working with our partners to continue evaluation of the area.

Click here to read the full Apache Corp. (NYSE:APA) press release.