A west Texas oil discovery could be one of the biggest energy finds of the last decade.
Apache Corp said it has discovered the equivalent of at least two billion barrels of oil in the new west Texas field located in the Delaware Basin portion of the Permian basin, which the company is calling “Alpine High”.
The discovery was made in an area near the Davis Mountains, a region that was often overlooked by geologists and engineers who felt it wasn’t a good fit for hydraulic ‘fracking’.
“The industry dogma about this area, all the fundamental premises that most people had about it, were just wrong.” Apache Chief Executive John Christmann IV said in an interview.
The find by Apache Corp is said to be worth approximately $8 billion by conservative estimates according to the Wall Street Journal. The company states that the new field could hold as much as 8.1 billion barrels of oil.
To put in perspective, the state of Texas, which is the largest oil producer in the US, generates around 1.35 billion barrels of oil annually. As of 2013, the basin accounted for 57% of Texas oil and 25% of all US oil production. New technological techniques have made this region exciting again.
Apache, who acquired mineral rights to the area 2 years ago, says it could be worth up to $80 billion. Apache Stock soared 13% after the announcement was made.
Apache quietly started acquiring more land in the field, and now holds more than 300,000 acres, or two thirds of the field, nearly 20 times the size of Manhattan.
Apache stock is up nearly 20% in the last week.