Apache Corporation (APA) disclosed for investors and shareholders the economics of drilling and completing horizontal oil and gas wells into the Wolfcamp Shale in the Midland Basin area of the Permian Basin.
Apache estimates that horizontal wells drilled and completed into the Wolfcamp Shale will cost an average of $7.7 million and have an estimated ultimate recovery (EUR) of 598,000 barrels of oil equivalent (BOE).
Apache estimates that 91% of the production from these wells will be crude oil or other liquid hydrocarbons and yield and return 44%. The company estimates that it has 971 drilling locations in the Wolfcamp Shale in the Midland Basin.
Apache has spud seven horizontal wells to date into the Wolfcamp Shale and is operating three rigs in Irion County, Texas, as of June 2012.