APA Corporation Announces Successful Flow Test Results at Krabdagu Discovery Well

Rhea-AI Summary

APA Corporation (Nasdaq: APA) announced flow test results from the Krabdagu exploration well (KBD-1) on Block 58 offshore Suriname. The tests showed oil-in-place resources of approximately 100 million barrels in the Upper Campanian zone and 80 million barrels in the Lower Campanian zone. The Upper Campanian had 32 meters of net oil pay with high-quality reservoir characteristics, while the Lower Campanian showed modest reservoir quality. Further appraisal drilling will be needed to confirm additional resources. The joint venture is also drilling the Dikkop exploration well in Block 58.

Positive

• Upper Campanian zone indicated a resource of over 100 million barrels of oil-in-place.
• Lower Campanian zone showed an estimated 80 million barrels of oil-in-place.
• CEO emphasized the importance of results for future exploration and resource assessment.

Negative

• Further appraisal drilling is required to confirm additional resources and optimal development well locations.
• Modest reservoir quality in the Lower Campanian zone may affect production efficiency.

HOUSTON, June 21, 2022 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today announced flow test results from the Krabdagu exploration well (KBD-1) on Block 58 offshore Suriname. APA Suriname holds a 50% working interest in the block, with TotalEnergies (TTE), the operator, also holding a 50% working interest.

Flow test data collected in the two lower intervals, the Upper Campanian and Lower Campanian, indicates oil-in-place resource of approximately 100 and 80 million barrels (MMbbls) respectively connected to the KBD-1 well.

• Upper Campanian Zone Results: 32 meters (105 feet) of net oil pay, high quality reservoir with 400-500 millidarcy permeability, 35 degree API, and 2000-2300 scf/bbl GOR. The buildup test indicated connected resource of more than 100 MMbbls of oil-in-place.
• Lower Campanian Zone Results: 32 meters (105 feet) of net oil pay, modest reservoir quality with 60-80 millidarcy permeability, 37 degree API, and 2500-2800 scf/bbl GOR. The buildup test indicated connected resource of more than 80 MMbbls of oil-in-place.

These tests were performed in the exploration well, and appraisal drilling will be necessary to confirm additional resource and optimal development well locations. The exploration well encountered another high quality, lower GOR interval in the Upper Campanian that was not in a location suitable for flow testing. This shallower Campanian zone will need to be flow tested in the appraisal stage from a more optimal location.

“The results from the Krabdagu flow-test in the two lower intervals are in line with our expectations and provide data that accelerates our understanding of the field and will shape future activity. This includes identifying the optimal well locations that enable assessment of upside resource potential for each target,” said John J. Christmann IV, APA’s CEO and president. “The connected resource demonstrated from the flow tests at Krabdagu combined with the results from Sapakara South, are a significant step forward in advancing a project in this area of Block 58.”

The APA-TTE joint-venture is currently drilling the Dikkop exploration well in the central portion of Block 58 with the Maersk Valiant. Following completion of operations at Dikkop, the Valiant is expected to continue exploration and appraisal activities in the central portion of Block 58.

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. 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) 296-7276	Alexandra Franceschi
Website:	www.apacorp.com

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FAQ

What were the flow test results for the Krabdagu well on Block 58?

The flow tests indicated 100 million barrels of oil-in-place in the Upper Campanian and 80 million barrels in the Lower Campanian.

What does the flow test data suggest about the potential of Block 58?

The flow test data suggests significant oil resources, with high-quality reservoirs in the Upper Campanian and modest quality in the Lower Campanian.

What are the next steps for APA Corporation after the flow tests?

APA Corporation plans to conduct further appraisal drilling to confirm additional resources and determine optimal drilling locations.

How does APA Corporation's current exploration activity relate to Block 58?

The company is currently drilling the Dikkop exploration well in the central portion of Block 58 following encouraging results from the Krabdagu well.