Apache Has High Hopes for New Oil-Field Discovery in Texas Energy firm says overlooked ‘Alpine High’ area potentially holds billions of barrels of oil

[IsailedawayfromFR]

Apache Corp.  says it has discovered the equivalent of at least two billion barrels of oil in a new west Texas field that has the promise to become one of the biggest energy finds of the past decade.

The discovery, which Apache is calling “Alpine High,” is in an area near the Davis Mountains that had been overlooked by geologists and engineers, who believed it would be a poor fit for hydraulic fracturing. It could be worth $8 billion by conservative estimates, or even 10 times more, according to the company.

Apache started acquiring mineral rights in the area two years ago and subsequently discovered its potential. The company then quietly went about locking up more land in the field, believed to be up to 450,000 acres overall. Its position now exceeds 300,000 acres, or roughly two-thirds of the field, and is about 20 times the size of Manhattan.

The company has begun drilling in the area and says the early wells, which produce more natural gas than oil, are capable of providing at least a 30% profit margin at today’s prices, including all costs associated with drilling. Some are so prolific that they can break even at a price of 10 cents per million British thermal units, according to the company. Natural gas futures closed Tuesday at $2.72.

“This is a giant onion that is going to take us years to unveil and peel back,” Apache Chief Executive John Christmann IV said in an interview. “The industry dogma about this area, all the fundamental premises that most people had about it, were just wrong.”
http://www.wsj.com/articles/apache-has-high-hopes-for-new-oil-field-discovery-in-texas-1473245702

The industry is not letting up

[uglybiker]

Yeah, but somewhere out there is some sort of desert slug that might conceivably could be somehow sort of microaggressed so all exporation should stop.

[thackney]

My first thoughts were about ConocoPhillips Alpine oil field.

But the Alaskan North Slope is a long ways from West Texas.

[IsailedawayfromFR]

My first thoughts were about ConocoPhillips Alpine oil field.

But the Alaskan North Slope is a long ways from West Texas.

Funny. Only one is proven as yet.

Folks that know say it might be hype as Apache is In dire straits lately, and may have excessive CO2 like nearby fields, making the commerciality questionable, certainly for such a large area.

So stay tuned. It was only 10 to 11 years ago many were questioning the wisdom of the new Eagleford play, and now it is America' strongest producer.

[Smokin Joe]

Funny. Only one is proven as yet.

Folks that know say it might be hype as Apache is In dire straits lately, and may have excessive CO2 like nearby fields, making the commerciality questionable, certainly for such a large area.

So stay tuned. It was only 10 to 11 years ago many were questioning the wisdom of the new Eagleford play, and now it is America' strongest producer.

Some of the best places to look are the ones that "can't be done". What can be done changes rapidly.

[IsailedawayfromFR]

Some of the best places to look are the ones that "can't be done". What can be done changes rapidly.

from a convert

[ABX]

Something is starting to pick up. KBR and Great White both have lifted their year plus long hiring freezes.