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APA Scraps and Shuts Keskesi South-1 Well Offshore Suriname

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The results of appraisal drilling at Keskesi South-1 of Block 58 offshore Suriname were released recently by APA Corporation (APA - Free Report) . While APA owns 50% participating interest in Block 58, TotalEnergies SE (TTE - Free Report) is the operator of the same with the remaining stake.

Keskesi South-1, which was drilled 6.2 kilometers from the Keskesi East-1 discovery well, found non-commercial amounts of hydrocarbons and was covered and discarded.

If connected to the reservoir sands in the discovery well, the concerned area will have the ability to demonstrate the presence of a significant resource. However, in the Keskesi South-1 site, sufficient reservoir quality sands were not formed. The well's data will be utilized to evaluate the geology model and guide the Keskesi appraisal's future phases.

The Maersk Developer rig arrived at the Sapakara South-1 well where a flow test of the previously reported appraisal success will be conducted. The exploration campaign will continue after the Sapakara South-1 flow test is completed with the spud of the next exploration well targeting the Krabdagoe potential, located immediately to the east of Keskesi. 

Bonbon, the initial exploration target at Block 58's northern part, is currently being drilled by the Maersk Valiant. TotalEnergies is in charge of both rigs.

About Block 58, Suriname

Block 58 covers 1.4 million acres in water depths and is located near Exxon Mobil Corporation (XOM - Free Report) 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.

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 meters) and a 164-feet (50 meters) 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, off the coast of Suriname. APA, the operator of the well, discovered a 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 Rank #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, indicating a high potential for productive oil wells. For APA, this joint venture with TotalEnergies, 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

Headquartered in Houston, TX, APA is one of the world's leading independent energy companies engaged in exploring, developing and producing natural gas, crude oil and natural gas liquids.