Apache Corporation reported the latest in a series of new field discoveries in the Matruh Concession of Egypt's Western Desert as well as an appraisal well that extended the known pay area of two reservoirs in the Shushan Concession.

The Falcon-1x discovery, which tested 4,400 barrels of oil per day from the Alam El Buieb (AEB-3D) formation, is located on the Matruh concession, about 7.5 miles east of the Jade Field and 2.4 miles southwest of the recent Adam discovery. Production is expected to commence in the third quarter.

The well also encountered hydrocarbon pay zones in the AEB-6 and Jurassic Safa formations that will not be produced until additional processing and transportation capacity is developed. A 52-foot interval of Upper Safa tested at a rate of 11 million cubic feet (MMcf) of gas and 415 barrels of condensate per day. The AEB-6 tested 35 MMcf and 1,953 barrels of condensate per day. An appraisal well is planned before year-end.

In the Shushan Concession, 37 miles west of Falcon-1x, the Hydra-5x appraisal well tested 21 MMcf of gas and 3,744 barrels of condensate per day from the Jurassic Upper Safa Formation. The Hydra-5x, which is 1.3 miles south of the Hydra-1x discovery well, extended the area of known pay in the Jurassic Lower Safa and AEB-6 reservoirs, and also encountered several well-developed hydrocarbon-bearing intervals in the Upper Safa formation.

"The rich liquid content of the in the Upper Safa test - 160-200 barrels per MMcf - is a positive development for the Hydra area," said Rod Eichler, Apache's co-chief operating officer and president - International.

Apache's Hydra-1X discovery, drilled in 2008, test-flowed 42 MMcf of gas and 1,313 barrels of condensate per day from the Lower Safa formation. The field is expected to be developed after completion of a gas sales agreement with the Egyptian General Petroleum Corp.