Apache Corporation Provides Update on Kwaskwasi-1 Discovery Well in Block 58 Offshore Suriname; Operations Commenced at Next Exploration Location, Keskesi

Rhea-AI Summary

Apache Corporation (Nasdaq: APA) and Total S.A. (NYSE: TOT) have updated their findings from the Kwaskwasi-1 discovery well offshore Suriname, which revealed hydrocarbons in multiple stacked targets. The well encountered 278 meters of net oil and gas pay, with the Campanian interval containing 63 meters of net oil pay. The Santonian interval showed 129 meters of net pay. The Noble Sam Croft drillship is now drilling the Keskesi East-1 exploration well, which is located 14 kilometers southeast of the Sapakara West-1 well. Apache holds a 50% working interest in Block 58.

Positive

• Kwaskwasi-1 revealed significant hydrocarbon potential with 278 meters of net pay.
• Successful retrieval of rotary sidewall cores indicates operational capability.
• Ongoing drilling at Keskesi East-1 expands exploration efforts.

Negative

• Failure to collect representative fluid samples due to cementing operations may hinder further analysis.

HOUSTON, Sept. 14, 2020 (GLOBE NEWSWIRE) -- Apache Corporation (Nasdaq: APA) and Total S.A. (NYSE: TOT) today provided an update to the technical evaluation of the Kwaskwasi-1 discovery well offshore Suriname.

As previously announced, Kwaskwasi-1 discovered hydrocarbons in multiple stacked targets in the upper Cretaceous-aged Campanian and Santonian intervals. The well encountered 278 meters (912 feet) of net oil and volatile oil/gas condensate pay. 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. The Santonian interval contains 129 meters (423 feet) of net pay. Fluid samples from the Campanian validated the presence of oil with API gravities between 34 and 43 degrees.

Since the discovery announcement on July 29, 2020, the Noble Sam Croft drillship has gathered reservoir and other technical data in the Santonian. The company was able to successfully retrieve rotary sidewall cores but was unable to collect representative fluid samples from the reservoir due to conditions caused by cementing operations, which were required to mitigate increased pressure below the base of the Santonian formation. Hydrocarbon shows were observed in the Santonian reservoirs, and the results of the formation evaluation indicate the presence of oil.

The Noble Sam Croft has commenced operations at the Keskesi East-1 exploration well approximately 14 kilometers (9 miles) southeast of Sapakara West-1. The Keskesi well will test upper Cretaceous targets in the Campanian and Santonian.

Apache holds a 50% working interest in Block 58 and will continue to be the operator through the completion of the Keskesi well. Total S.A. holds the remaining 50% working interest.

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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FAQ

What are the findings from the Kwaskwasi-1 well in Suriname by Apache Corporation?

The Kwaskwasi-1 well reported 278 meters of hydrocarbon pay across multiple intervals, with 63 meters of net oil pay in the Campanian and 129 meters in the Santonian.

What is the current status of drilling operations at Apache's Keskesi East-1 well?

The Noble Sam Croft drillship has commenced drilling at the Keskesi East-1 well, testing targets in the Campanian and Santonian.

How much working interest does Apache hold in Block 58?

Apache holds a 50% working interest in Block 58 offshore Suriname.

Why couldn't Apache collect fluid samples from the Santonian reservoir?

Apache was unable to collect fluid samples due to conditions caused by cementing operations needed to relieve pressure.