Leading independent energy company Apache Corporation (APA - Free Report) , recently, issued an updated report detailing its oil and liquid resources across various plays, on both domestic and international fronts.
Per the report, Apache holds the position of being the second-biggest producer and acreage owner in the Permian Basin of West Texas and eastern New Mexico. The company has identified nearly 34,500 drillable locations in the region and is estimated to contain about 3.8 billion barrels of oil equivalent (Boe).
Houston, Texas-based Apache has almost 32,500 drillable locations, with a reserve of 5.4 billion Boe, spanning over the Granite Wash, Cleveland, Tonkawa and Marmaton formations in the Anadarko Basin, western Oklahoma and the Texas Panhandle.
The company also confirmed the presence of high quality natural gas in a new shale play in British Columbia’s Liard Basin with an estimated reserve of 48 trillion cubic feet or 8 billion Boe. Apache enjoys 100% working interest in the holding.
Apache’s 450,000-acre position in the Vaca Muerta oil shale in Argentina holds a net potential recoverable resource of 800 million Boe.
Apache has also identified some new exploratory oil base. These cover the 580,000-acre (net) position (resource potential of 2 billion barrels of oil) in the Mississippian Lime play and the 300,000-acre net position (resource potential of 1 billion barrels of oil) in the Williston Basin in Daniels County, Montana.
Apache also expects to start operations in Alaska and offshore Kenya in the coming months.
With the large and rich resource base and declining drilling costs, Apache remains committed to carry on its exploration activities that will yield high returns and long-term value.
We are maintaining our long-term Neutral recommendation on Apache, reflecting its high-quality and diversified asset base, attractive production outlook and healthy financial profile, partially offset by unstable gas/oil prices and a depressing macro environment.
Apache, which competes with other energy players such as Anadarko Petroleum Corporation (APC - Free Report) and Exxon Mobil Corporation (XOM - Free Report) , currently, retains a Zacks #3 Rank, which translates into Hold rating for a period of one to three months.