Oil exploration company Apache Corporation announced on Wednesday it made a significant discovery of 75 trillion cubic feet of natural gas and 3 billion barrels of oil in a new field in West Texas, a discovery that some are calling one of the biggest in the energy industry in the past decade.
The discovery comes from the Permian Basin near the Davis Mountains just south of New Mexico, and Apache is calling the new play “Alpine High.”
Chief Executive Officer of Apache John J. Christmann IV said in a statement that the company’s two years of hard work and investment in organic growth led to this discovery while many other companies were focusing on acquisitions and saving money during the downturn. The company’s contrarian efforts led to an immense recourse that could yield anywhere from $8 billion to $80 billion, according to Texas Monthly.
Apache has begun drilling and has identified thousands of future drilling locations in the Woodford and Barnett formations alone. It estimates the area to deliver a combination of gas and oil worth between $4 million and $20 million per well with gas at $3 per million cubic feet and oil at $50 per barrel.
After Apache’s announcement of the discovery Wednesday, shares for the company increased by as much as 14 percent according to Texas Monthly.