Tickers in this Article: APA, BP, RDS.A, E
Egypt will remain the cornerstone of Apache Corporation's (NYSE:APA) international portfolio as the company continues an aggressive exploration and development program here over the next five years. TUTORIAL: Top Stock-Picking Strategies

Egypt Overview
Egypt currently produces approximately 660,000 barrels of oil per day, according to the Energy Information Administration, and has 4.4 billion barrels of proven reserves. This production has declined from a peak of 935,000 barrels of oil per day, which was reached in 1996.

On the natural gas side, Egypt holds 77 Tcf of proven natural gas reserves, and produced 2.3 Tcf in 2009. Natural gas production has been increasing rapidly over the last decade and totaled approximately 700 Bcf in 1999.

Apache Egypt
Apache Corporation has been in Egypt since the early 1960s and has built a position of 11 million gross acres across seven basins.

Apache Corporation reported production of 171,000 barrels of oil equivalent (BOE) per day from its Egyptian properties during the first quarter of 2011. The company will spend $1.15 billion in capital in 2011 on its most important international area.

Apache Corporation doubled production from Egypt over the 2005 to 2010 time frame and has established a goal of adding another 100,000 BOE per day of gross production by 2015.

Apache Corporation has production from seven separate onshore basins, and plans to develop mostly oil assets across these areas. In 2011, the company will target various oil formations with 232 completions.


Unconventional Plays
Apache Corporation is also targeting unconventional plays in Egypt in 2011 and is looking at a shale oil play in the East Bahariya area. The company estimates that it has 74,000 net acres prospective for this play and plans to drill two wells in 2011.

New Plays
Apache Corporation recently reported two successful Paleozoic wells in the Western desert area and believes that this discovery created a new play for the company to exploit. The company plans further tests to determine the aerial extent of the play.

Other Players
Other oil and gas companies active in Egypt include BP (NYSE:BP), which reported production of 150,000 BOE per day from operations here in 2010. The company recently reported a natural gas discovery in the West Nile Delta area.

Eni (NYSE:E) is also a major operator in Egypt and has production from eight fields across the country. The Tuna Field was the most recent project for Eni; it started up production in July 2010.

Royal Dutch Shell (NYSE:RDS) has been in Egypt for 100 years and has most of its upstream assets located in the Western Desert and Nile delta regions.

The Bottom Line
Apache Corporation is sticking with Egypt despite the recent civil unrest in that country during the early part of 2011. The company is looking to add 100,000 BOE per day of gross production by 2015.

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