December 16th, 2019 – Houston, Texas – Apache Corporation released little information on the two new exploration wells drilled in Suriname, disappointing investors and triggering a drop in stock price.
Apache has drilled two wells in Block 58 off the coast of Suriname to approximately 20,000 feet in an upper cretaceous play. This block sits just 7 miles east of ExxonMobil’s highly successful Stabroek block, offshore Guyana. There are plans for a third well at a target depth of approximately 22,000 feet.
Wall Street investors are averse to uncertainty in quarterly results. While Apache’s stock suffered the consequences and dropped in the wake of their recent report, it is not confirmation either way of success in Block 58.
Unlike most offshore exploration ventures, Apache holds 100% of the working interest in Block 58 offshore Suriname, where the Maka-1 well is being drilled. In contrast, in the Stabroek Block offshore Guyana, ExxonMobil partners are Hess Corporation with a 30% interest and CNOOC International with 25%. That leaves Apache and its shareholders more exposed to the performance in the block.
Maka-1 is “among the most anticipated wells in the world,” analysts at Tudor, Pickering, Holt & Co., a Houston based investment firm said in a note Monday. “While we appreciate the desire to test multiple play concepts given promotion of the vast potential of this block, releasing the first update without any color on the results of the first two tests will not be taken well by the market.”
Says Lars Mangal, CEO TOTALTEC Oilfield Services, “Exploration is a time consuming and uncertain science. Consider how long ExxonMobil evaluated and explored the Stabroek block before success, a short distance away. In planning for the future, we are still thinking in terms of an offshore industry that extends beyond Guyana. When Suriname’s time comes, we look forward to supporting them in developing capacity for their own energy industry.”
Image courtesy of JHI Associates: https://www.jhiassociates.com/guyana-basin
About TOTALTEC
TOTALTEC Oilfield Services is focused on the success of the oil industry in Guyana for the benefit the country, its people, and partner companies. It does this through three areas: people, partnerships, and facilities. Qualified and motivated Guyanese develop through the International Petroleum & Maritime Academy. Partnerships prioritize products and services that are starting points to grow from, creating new Guyanese led companies. Examples are Guyana Shore Base, Inc. providing support to offshore operations and Jaguar Oilfield Services offering a complete range of lifting equipment and inspection services. The 94% Guyanese TOTALTEC workforce includes 8 nationalities with over 160 years of international oilfield experience. https://www.totaltec-os.com