APA Corporation Provides Update on Keskesi East-1 Discovery Well in Block 58 Offshore Suriname; Drillship to be Released as Planned

Rhea-AI Summary

APA Corporation and Total S.A. announced updates on the Keskesi East-1 discovery well offshore Suriname. The well encountered significant pressure increases, prompting a halt in drilling before reaching deeper targets. While hydrocarbons were found in shallower intervals, specific information about deeper targets remains unclear. APA transferred operatorship of Block 58 to Total, holding a 50% interest. This operational update impacts future drilling strategies but does not provide immediate production details.

Positive

• Hydrocarbons found in Lower Cretaceous interval validate geological models.
• Strategic collaboration with Total S.A. in Block 58.

Negative

• Drilling halted due to significant pressure increases, limiting exploration of deeper targets.
• Uncertainty about the Neocomian targets remains.

HOUSTON, March 09, 2021 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) and Total S.A. (NYSE: TOT) today updated the operational status of the Keskesi East-1 discovery well offshore Suriname.

As announced on Jan. 14, 2021, Keskesi East-1 discovered oil, volatile oil and condensate in the Upper Cretaceous-aged Campanian and Santonian intervals and, subsequently, continued drilling toward deeper Neocomian-aged targets. As drilling progressed, the well encountered substantial pressure increases that APA and Total determined could ultimately exceed the capabilities of the wellbore design and pressure control equipment. Consequently, the partners decided to conclude drilling operations at Keskesi before reaching the Neocomian targets. Information gathered from this well will be used to design a wellbore and drilling program that will ensure a safe test of the deep Neocomian targets in future exploration and/or appraisal operations.  

The additional drilling at the Keskesi East-1 well encountered hydrocarbons in the Lower Cretaceous interval and a carbonate depositional system above the top Neocomian target, both of which help to validate the partners’ geologic models. While encouraging, this data does not reveal specific information about the Neocomian targets themselves.

With the completion of operations at Keskesi East-1, the Noble Sam Croft drillship will be released as planned. Pursuant to the terms of its joint venture agreement, APA transferred operatorship of Block 58 to Total S.A. on Jan. 1, 2021. APA holds a 50% working interest in Block 58 and Total holds the remaining 50% working interest.  

About APA

APA Corporation, through its consolidated subsidiaries, explores for and produces oil and gas with operations in the United States, Egypt and the United Kingdom and exploration activities offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Specific information concerning 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 Apache’s Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 25, 2021, 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	Phil West
Website:	www.apacorp.com

APA-G

FAQ

What was announced in the APA Corporation and Total S.A. press release regarding Keskesi East-1?

The press release updated the operational status of the Keskesi East-1 well, noting that drilling was halted due to pressure issues before reaching deeper targets.

What geological findings were reported at the Keskesi East-1 well?

The well found hydrocarbons in the Lower Cretaceous interval, supporting the partners' geological models.

What is the current ownership structure of Block 58 after the recent announcement?

APA Corporation holds a 50% working interest in Block 58, with Total S.A. holding the other 50%.

What risks were associated with the drilling operations at Keskesi East-1?

Significant pressure increases posed risks that could exceed the capabilities of the wellbore design and pressure control equipment.