By PENNY CASTLE, of The Weyburn Review
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With production in the Midale unit reaching a high last seen 20 years ago, unit operator Apache Oil is fulfilling a plan to push for growth, to expand and get the most out of daily operations. Apache hit the Midale scene in December of 1999, when it officially took over Shell ownership of 68.2 per cent in the Midale unit, which was part of a larger purchase made about six months prior. Manager Brian Evert says the staff of 24 employees has stayed much the same, but the philosophy has changed. "Apache is a growth company, very aggressive," he said. "That's why we have moved ahead very quickly in drilling in the Midale field." Evert says the company has drilled 18 wells this year and has three drill rigs going right now. The plan is to drill in the neighborhood of 60 to 70 wells by the end of the year, both producers and injectors. He says the new wells have been very successful, and when that happens, drilling continues. In the month of May, Apache brought in 1,030 cubic metres of oil per day and is averaging 1,100 cubic metres per day in June. This has created a lot of activity in terms of building leases, drilling rigs, pipe lining, and starting the wells. And on June 15, the company started operation of a truck off-loading facility it built in partnership with Dynegy Canada. The facility represents a $2 million investment that ties in with the existing plant and gives the company the opportunity to process an additional 20,000 cubic metres per month, according to Evert. "We take our own medium oil and upgrade it with lighter oils to sell it as a light crude instead of medium crude," he said. "It allows us to get more value for our product. We have a lot coming in already for processing, but now we have the right equipment to be more efficient at it. This will add on some volume. "We'll be focusing on drilling for the rest of this year and into the next as well. We continue enhancing with new pipelines and equipment, which creates a lot of jobs and makes it busier for area contractors." The Midale field itself was first discovered in 1953. Shell operated the unit from 1962 until it sold its interest in Midale, an oil field at Swan Hills and a gas plant in northern Alberta to Apache. Apache is an independent oil and gas exploration and development company with operations in North America, Egypt, Western Australia, Poland, and China. |
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