A newly discovered oil field in West Texas is believed to contain billions of barrels of shale oil. Apache, a Houston company, reports that the discovery, called “Alpine High” could be worth at least $8 billion.
Apache believes the new shale play spans at least five formations, contains over three billion barrels of oil and 75 trillion cubic feet of rich natural gas.
Apache (APA) revealed the huge find after more than two years of stealthily buying up land, extensive geological research and rigorous testing.
“We feel very confident with what we have and believe this is a story that’s only going to get better,” Apache CEO John Christmann IV told CNNMoney.
Apache has identified at least 2,000 drilling locations, and estimates an initial value of between $4 million to $20 million per well. That translates to at least $8 billion in value for the company, but potentially a lot more. The company has already drilled 19 wells in the play, with nine currently producing “limited quantities” due to infrastructure constraints.
- Written by Press Room