Apache Corp. (NYSE: APA) reported strong appraisal and development drilling results from Egypt’s western desert, following the discovery of two new oil fields there. The discoveries were initially announced with the Feb. 12, 2015 release of fourth-quarter 2014 results, the company said March 31.

The Egyptian General Petroleum Corp. (EGPC) and Ministry of Petroleum approved development leases for the Berenice and Ptah fields in the Fagur Basin in 13 days and six days, respectively. The fields are along the same fault trend in the basin’s Khalda offset concession, targeting Mezozoic and Paleozoic rock.

Apache Egypt discovered oil and natural gas in Mezozoic and Paleozoic rock from the nearby Shu-1X, Apries-1X, Bat-1X and Geb-1X wells. Ptah is the largest new field found in the play thus far, the company added.

Khalda Petroleum Co., Apache’s joint-venture company with EGPC, has completed five wells to date, including the discovery wells. They are producing more than 13,600 bbl/d at a combined rate without fracture stimulation. They have produced about 1 MMbbl to date. Apache invested $14 million to install production facilities, and will invest another $35 million to handle the forecast production increase.

Apache has three rigs drilling development wells in the fields. Oil is shipped by pipeline to nearby Khalda-operated processing facilities. The Houston-based E&P company expects production to increase to 17,500 bbl/d by mid-year.

Berenice first produced light oil from the Cretaceous Alam El Buieb formations, AEB-3D and AEB-3E, in November 2014. More than 9,500 bb/d is currently produced from three wells, and pay zones range between 38 ft and 142 ft.

Apache’s drilling rig is drilling Berenice-4 and will drill Berenice-5. Berenice-4 contains a 142-ft oil pay zone in the target AEB-3D/-3E sandstones with excellent reservoir quality. Up to four additional wells are planned during the first phase of development. Drilling depth is about 12,000 ft. Completed well costs, for each development well, are expected to be about $3 million.

Ptah first produced light oil from the Paleozoic Shiffah Formation in December 2014. This field also has substantial target zones logged in the AEB-3D/-3E formations that are not tested yet. In the Shiffah, the discovery well, Ptah-1X, produces 2,350 bbl/d. Ptah-3X, a second well, started production in March 2015 at 2,000 bbl/d. Shiffah pay zones have averaged 130 ft.

Apache will conduct further appraisal drilling and production testing to define field size and reserves. Completed well costs should average $3.7 million for Shiffah wells, and $2.5 million for the AEB-3D/-3E wells.