September 9, 2016
Apache Corp. has discovered the equivalent of at least two billion barrels of oil in its Alpine High, a West Texas oil field near the Davis Mountains. The region, overlooked by engineers and geologists as a poor fit for hydraulic fracturing, nonetheless could be worth at least $8 billion.
Apache started acquiring mineral rights in the edge of the Permian Basin two years ago. Then, realizing its potential, the company locked up more rights in more land. The field is believed to take up approximately 450,000 acres.
The company will direct approximately one-fourth of its capital budget this year toward the oil field. It will, however, require several years to ramp up production because of the need for pipelines and other equipment. Apache has so far drilled 19 wells in the region.
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