MercoPress. South Atlantic News Agency

US Co. extracting crude and gas in Tierra del Fuego

Houston independent Apache Corp. reported that its Seccion Banos-2004 well on the Argentine side of Tierra del Fuego is producing 1,635 b/d of oil and 1.3 MMcfd of gas from the Lower Cretaceous Springhill sandstone. The well is the first large producer drilled following Apache's 1,800 sq-km, 3D seismic survey in the area.

"Prior to Apache becoming operator of this 714,000-acre block?very little 3D seismic had been acquired," said Apache Pres. and Chief Executive Steven Farris. "With 40% of the survey shot, and newly processed data arriving every day, we have identified more than 30 exploratory, field extension, and development locations." Apache said SB-2004 had the highest initial production rate of any well drilled in 40 years of oil and gas activity on the concession. Drilled to 5,544 ft, it confirms the productivity of a sparsely drilled 20 sq mile area between three 40 year-old fields?Cañadon Piedras, Cabo Nombre, and Bajo Grande. Apache has begun drilling the first of six potential offsets it has identified. Production from SB-2004 follows Apache's development of the previously unexploited offshore discovery at Cabo Nombre Sur, 4.2 miles to the south. Two wells?the CNS-2005 and CNS-2006?are producing a total of 11.5 MMcfd of gas and 53 b/d of oil. Apache operates the Tierra del Fuego concession and holds a 70% working interest; Repsol YPF holds the remaining 30%. On Tierra del Fuego, Apache holds almost 2 million gross acres?714,000 acres on the Argentine side of the island and two recently awarded exploration blocks comprising 1.2 million acres on the Chilean side. Apache's net production on the island is 5,226 b/d of liquids and 122 MMcf of gas.