Sunday, June 26, 2022

APA shares fall 4% after encountering water-bearing reservoirs offshore Suriname

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APA corporation, an affiliate of Apache Corporation, said it encountered water-bearing reservoirs at Rasper well in the northwestern area of Suriname’s Block 53.

“The well encountered water bearing reservoirs in the Campanian and Santonian intervals, evaluation of the open hole well logs, and formation and reservoir fluid samples is ongoing,” the company said on Monday after completing operations at the well.

Reuters called the result disappointing and noted that APA’s shares fell 4% following the news.

The Noble Gerry de Souza, which was used, will be mobilizing to the next exploration prospect in the southwestern corner of Block 53, called Baja. Baja lies approximately 11 kilometers northeast of the recently announced Block 58 discovery at Krabdagu and will test Maastrichtian and Campanian targets.

APA has a 45% operating stake in Block 53, and shares it with 30% owner Petronas, and 25% owner, CEPSA. The block has an area of 867,000 acres.

Block 58, which lies immediately west of Block 53 and east of the prolific Guyana Stabroek Block, holds several commercial wells discovered by APA subsidiary, Apache, and TotalEnergies. Suriname is awaiting an investment decision from TotalEnergies on a project in the Block.

Modeling of Block 58 by investment bank, Morgan Stanley, in 2020 found it contains a potential 6.5 billion oil-equivalent barrels.

Suriname is preparing to auction deepwater blocks later this year in the eastern end of its exclusive economic zone (EEZ), and shallow water blocks in mid-2023.

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