Apache Corporation Announces Major Oil Discovery in Block 58 Offshore Suriname at Kwaskwasi-1

Rhea-AI Summary

Apache Corporation (Nasdaq: APA) and Total S.A. (NYSE: TOT) announced a significant oil discovery at the Kwaskwasi-1 well offshore Suriname in Block 58. The well encountered 278 meters (912 feet) of net oil and volatile oil/gas condensate pay. With the well drilled to approximately 6,645 meters (21,800 feet), the preliminary results indicate high-quality reservoirs, enhancing the prospect of accelerated production. Following Kwaskwasi-1, the Keskesi East-1 well will be drilled, potentially unlocking further resources within the 1.4 million acres of Block 58.

Positive

• Successful discovery at the Kwaskwasi-1 well with 278 meters of net oil and volatile oil/gas condensate pay.
• High-quality reservoirs reported, indicating potential for accelerated first production.
• The discovery adds to previous finds, enhancing the overall resource potential in Block 58.

Negative

• None.

• Third consecutive discovery offshore Suriname confirms a world-class hydrocarbon resource.
• Kwaskwasi-1 well encountered 278 meters (912 feet) of net oil and volatile oil / gas condensate pay.
• Fourth exploration prospect in Block 58, Keskesi East-1, will be drilled immediately following conclusion of operations at Kwaskwasi.  

HOUSTON, July 29, 2020 (GLOBE NEWSWIRE) -- Apache Corporation (Nasdaq: APA) and Total S.A. (NYSE: TOT) today announced a major oil discovery at the Kwaskwasi-1 well drilled offshore Suriname in Block 58. The well was drilled using the Noble Sam Croft with Apache as operator holding a 50% working interest and Total holding a 50% working interest.

Kwaskwasi-1 was drilled to a depth of approximately 6,645 meters (21,800 feet) and successfully tested for the presence of hydrocarbons in multiple stacked targets in the upper Cretaceous-aged Campanian and Santonian intervals.

Preliminary fluid samples and test results indicate at least 278 meters (912 feet) of net oil and volatile oil / gas condensate pay in two intervals. The shallower Campanian interval contains 63 meters (207 feet) of net oil pay and 86 meters (282 feet) of net volatile oil / gas condensate pay. Based on samples taken, the API oil gravities are between 34 and 43 degrees. The deeper Santonian interval contains 129 meters (423 feet) of net hydrocarbon reservoir. The team is still collecting data on API oil gravities in the Santonian.

“We are thrilled with the results from the Kwaskwasi-1 exploration well. This is the best well we’ve drilled in the basin to date, with the highest net pay in the best quality reservoirs,” said John J. Christmann, Apache CEO and President. “While we have a lot more work to do, a discovery of this quality and magnitude merits a pace of evaluation that enables the option of accelerated first production.”

Block 58 comprises 1.4 million acres and offers significant potential beyond the discoveries at Kwaskwasi, Sapakara West and Maka Central. Apache has identified at least seven distinct play types and more than 50 prospects within the thermally mature play fairway.

Upon completion of operations at Kwaskwasi-1, the Sam Croft will move to the fourth prospect in Block 58, Keskesi, which is located approximately 14 kilometers (9 miles) southeast of Sapakara West-1. The Keskesi exploration well will test oil-prone upper Cretaceous targets in the Campanian and Santonian.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom and exploration activities offshore Suriname. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.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 Apache’s 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 our 2019 Form 10-K and in our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") for a discussion of risk factors that affect our business. Any forward-looking statement made by Apache 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. Apache undertakes 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.

Cautionary note to investors  

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache may use certain terms in this release, such as "resources," "potential resources," "resource potential," "estimated net reserves," "recoverable reserves," and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, TX 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov. 

Contacts

Investor:  (281) 302-2286       Gary Clark
Media:     (713) 296-7276       Phil West                                    
Website:  www.apachecorp.com

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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/70a9689e-dd7b-463b-9d1a-03e01f06cfae

FAQ

What is the significance of the Kwaskwasi-1 well discovery by Apache Corporation?

The Kwaskwasi-1 well discovery indicates a significant hydrocarbon resource, enhancing prospects for accelerated production.

What are the results of the Kwaskwasi-1 well drilled by Apache Corporation?

The well encountered approximately 278 meters of net oil and volatile oil/gas condensate pay.

Where is Block 58 located and what is its size?

Block 58 is located offshore Suriname and comprises approximately 1.4 million acres.

What are the future drilling plans after the Kwaskwasi-1 well?

Following the Kwaskwasi operations, the Keskesi East-1 well will be drilled in Block 58.

Who are the partners involved in the Kwaskwasi-1 well discovery?

Apache Corporation and Total S.A. are the partners involved, each holding a 50% working interest.