APA Corporation Announces First Discovery in Block 53 Offshore Suriname; Provides Update on Block 58 Operations

Rhea-AI Summary

APA Corporation (Nasdaq: APA) announced an oil discovery offshore Suriname at Baja-1 in Block 53, reaching a depth of 5,290 meters and encountering 34 meters of net oil pay. The preliminary analysis indicates light oil with a favorable gas-oil ratio. This marks the sixth oil discovery in the region, confirming APA's geologic model. Additionally, the company received regulatory approval for a four-year extension of the Block 53 Production Sharing Contract. Operations on the Dikkop exploration well in Block 58 concluded with water-bearing sandstones found.

Positive

• Discovery of 34 meters of net oil pay at Baja-1 in Block 53, enhancing potential in the region.
• Confirmed geologic model boosts confidence in further exploration in Blocks 53 and 58.
• Regulatory approval for a four-year extension of the Block 53 Production Sharing Contract, providing operational flexibility.

Negative

• Dikkop exploration well in Block 58 encountered water-bearing sandstones, resulting in abandonment.

HOUSTON, Aug. 23, 2022 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today announced an oil discovery offshore Suriname at Baja-1 in Block 53 and provided an update on recent drilling operations at Dikkop-1 in Block 58.

Block 53
Baja-1 was drilled to a depth of 5,290 meters (17,356 feet) and encountered 34 meters (112 feet) of net oil pay in a single interval within the Campanian. Preliminary fluid and log analysis indicates light oil with a gas-oil ratio (GOR) of 1,600 to 2,200 standard cubic feet per barrel, in good quality reservoir. The discovery at Baja-1 is a down-dip lobe of the same depositional system as the Krabdagu discovery, 11.5 kilometers to the west in Block 58. Evaluation of open-hole well logs, cores and reservoir fluids is ongoing.

“Our success at Baja marks the 6^th oil discovery we have participated in offshore Suriname, and the first on Block 53,” said John J. Christmann, APA CEO and president. “This result confirms our geologic model for the Campanian in the area and helps to de-risk other prospects in the southern portion of both Blocks 53 and 58.”

APA recently received regulatory approval regarding an amendment to the Block 53 Production Sharing Contract (PSC), which provides options to extend the exploration period of the PSC by up to four years. The company is currently progressing the formalization of the election of the first one-year extension, for which all work commitments are complete.

APA is operator and holds a 45% working interest in Block 53, with Petronas holding a 30% working interest and CEPSA holding a 25% working interest. Baja-1 was drilled using the Noble Gerry de Souza in water depths of approximately 1,140 meters (3,740 feet). The drillship will mobilize to Block 58 following the completion of current operations, where it will drill the Awari exploration prospect, approximately 27 kilometers (north) of the Maka Central discovery.

Block 58
APA also announced that operations have concluded on the Dikkop exploration well in Block 58. The well encountered water-bearing sandstones in the targeted interval and has been plugged and abandoned. TotalEnergies is the operator with a 50% working interest, and APA holds the remaining 50% working interest. The drillship Maersk Valiant will be moving to the Sapakara field to drill a second appraisal well at Sapakara South, where the joint venture conducted a successful flow test late last year.

About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and the Dominican Republic. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Additional details regarding Suriname, ESG performance and other investor-related topics are posted at investor.apacorp.com.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2021, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Contacts
Investor: (281) 302-2286	Gary Clark
Media: (713) 296-7189	Castlen Kennedy
Website: www.apacorp.com

APA-G

FAQ

What was discovered at Baja-1 offshore Suriname by APA Corporation?

Baja-1 encountered 34 meters of net oil pay, indicating a successful oil discovery.

What are the implications of the discovery at Baja-1 for APA Corporation?

The discovery confirms APA's geological models and reduces risk for other prospects in the region.

What is the current status of the Dikkop exploration well in Block 58?

The Dikkop well encountered water-bearing sandstones and has been plugged and abandoned.

How did APA Corporation secure its exploration rights in Block 53?

APA received regulatory approval for a four-year extension of the Block 53 Production Sharing Contract.

What is the next step for the drilling operations after Baja-1?

The drillship will mobilize to Block 58 to drill the Awari exploration prospect.