Apache said its three Flag Sandstone oil discoveries, Victoria-1, Pedirka-1 and Little Sandy-1 will be tied into existing infrastructure and transported to the company's processing facilities on Varanus Island with initial production slated for early next year.
The wells are owned by the Harriet Joint Venture, which includes Apache (68.5%), Kufpec (19.3%) and Tap Oil (12.2%). Apache said it has plans to drill four more exploratory wells this year.
Apache attributed the success of its Flag program to better technology that enabled it reinterpret 3D seismic to pinpoint oil accumulations in the area, which had previously been difficult to detect.
Unfortunately for the people at accounting firm Arthur Anderson, they will not have the pleasure of counting Apache's money. Apache has announced it is searching for a new auditing firm though it vehemently denies it has anything to do with Anderson's role in the infamous Enron collapse, the largest in US corporate history.
"Our decision to engage another independent accounting firm is no way a judgement on Arthur Andersen current entanglement with the Enron debacle," said Apache chairman and CEO, Mr Raymond Plank. "We've made this decision because we believe it is in the best interests of the shareholders to move forward now that our 2001 10-K has been filed."
