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Apache (APA) Hits Oil for the 4th Time in Suriname's Block 58

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Apache Corporation (APA - Free Report) and its joint venture partner TOTAL S.A. (TOT - Free Report) have made the fourth oil discovery at the Keskesi East-1 well in Block 58, offshore Suriname.

The Keskesi East-1 well, which was drilled using Noble Sam Croft drillship at a water depth of 725 meters, found a total of 63 meters net pay of hydrocarbons, containing 58 meters of net black oil, volatile oil, and gas pay in good quality Campano-Maastrichtian reservoirs. It also holds 5 meters of net volatile oil pay in Santonian reservoirs where wireline logging has just been carried out. Drilling of the Keskesi East-1 well is still in progress to deeper Neocomian-aged targets.

At the beginning of this year, Apache passed on its operatorship to TOTAL with a 50% working interest. However, the company will remain the operator of Keskesi East-1 until thecompletion of its operations after which the Noble Sam Croft drillship will be released and moved to Guyana where it will drill for ExxonMobil (XOM - Free Report) . The next exploration well by the joint venture will be drilled at the Bonboni location.

About Block 58, Suriname

Block 58 covers 1.4 million acres in water depths and is located near ExxonMobil and Hess Corporation’s (HES - Free Report) Stabroek block in Guyana, South America’s newest oil giant. The field seems a unique, large-scale oil resource opportunity.

With the success of oil discoveries from four wells in Block 58, offshore Suriname, the company CEO and president John Christmann says, “we are excited to commence the appraisal program on our initial discoveries and extend our Block 58 exploration program to the north in 2021”.

Details of the Previous Oil Discoveries in Block 58

Last January, the joint venture discovered oil reservoirs at the Maka Central-1 well at a depth of 240 feet (73 metres) and a 164-feet (50 metres) deep hydrocarbon-bearing light oil and gas condensate pay.

Later, the joint venture partners made a second oil discovery at the Sapakara West-1 well in Block 58, offshore Suriname. Apache, the operator of the well, discovered 259 feet (79 meters) net pay of high-quality light oil and gas condensate in multiple stacked and good quality reservoirs.

Subsequently in July 2020, the currently Zacks Ranked #3 (Hold) company informed about a key find at Kwaskwasi-1, its most precious well to date and the third successive exploit at Block 58. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The drilling results proved to be pleasing for both companies as the well confirmed ample traces of hydrocarbon within its bounds, mirroring a high potential for productive oil wells. For Apache, this joint venture with TOTAL, which is one of the top five publicly traded global integrated oil and gas players, enormously enhanced its portfolio with the addition of the latter’s extensive offshore expertise and global footprint.

Company Summary

Founded in 1954, Houston, TX-based Apache is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Geographically, the company’s operations are based in the United States, Egypt and in the North Sea of the United Kingdom. Apache also holds acreage in offshore Suriname (South America) and at other international sites.

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