Apache Corp to Develop New Texas Oilfield, Raises Capex
Oil and gas producer Apache Corp raised its capital budget for the year and said it would spend more than a fourth of the amount on a newly discovered oilfield in Texas.
The company's shares rose 8.4 percent to $55.99 in premarket trading on Wednesday.
Apache, which said it held more than 300,000 acres in the field it calls "Alpine High", raised its budget estimate for the year to $2 billion from $1.8 billion.
The company's acreage in the field is located mainly in Reeves County, Texas and holds an estimated 75 trillion cubic feet of gas and 3 billion barrels of oil.
"We are incredibly excited about the Alpine High play and its large inventory of repeatable, high-value drilling opportunities," Chief Executive John Christmann said in a statement.
The company has so far drilled 19 wells in the field, nine of which are producing wells.
(Reporting by Swetha Gopinath in Bengaluru)
