Apache Corporation (APA) recently updated for investors and shareholders the economics of drilling and completing horizontal oil and gas wells into the Cline Shale in the Midland Basin area of the Permian Basin.
Apache estimates that horizontal Cline Shale wells will cost an average of $7.6 million to drill and complete and have an estimated ultimate recovery (EUR) of 423,000 barrels of oil equivalent (BOE).
Apache estimates that 87% of the production from these wells will be crude oil or other liquid hydrocarbons and yield an average return of 28%. The company estimates that it has 2,321 drilling locations in the Cline Shale in the Midland Basin.
Apache has drilled four wells into the Cline Shale through June 2012 and is currently operating two rigs here. The company plans to drill a total of ten wells in 2012.