APA Corporation Announces Successful Flow Test at Sapakara South and Sub-Commercial Black Oil Discovery at Bonboni Offshore Suriname on Block 58

HOUSTON, Nov. 16, 2021 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today announced results from flow testing at the Sapakara South appraisal well and drilling results from the Bonboni exploration well, both operations recently completed on Block 58 offshore Suriname. APA Suriname holds a 50% working interest in the block, with TotalEnergies (TTE), the operator, holding a 50% working interest.

Sapakara South-1 (SPS-1) flow test

Flow and subsequent pressure build-up tests were recently completed at Sapakara South-1 (SPS-1), an appraisal well drilled earlier this year on the eastern edge of Sapakara nearly 4 kilometers from the discovery well. As disclosed earlier this year, SPS-1 encountered approximately 30 meters (98 feet) of net black oil pay in a single zone of high-quality Campano-Maastrichtian reservoir.

A restricted flow test averaged 4,800 barrels oil per day (bopd) for 48 hours. Without flow restrictions, a development well would produce at a significantly higher sustained rate. Preliminary analysis of the data indicates the following:

• A single reservoir in SPS-1 proved connected resource of 325 to 375 million barrels of oil in place
• Exceptional reservoir quality with permeability in the range of 1.4 Darcies
• Black oil with a 34-degree API and flowing gas-to-oil ratio (GOR) of approximately 1100 standard cubic feet per barrel (scf/bbl)
  

Seismic imaging of this Sapakara reservoir supports substantially more potential resource, which could be proven through additional appraisal drilling.

“We are very pleased with the flow test results. The data we’ve collected confirms an excellent quality black oil reservoir, which we believe will serve as a foundation for a development project in Suriname,” said John J. Christmann IV, APA’s CEO and president. “The high permeability of the oil-bearing sand and its thick and consistent quality indicate strong well deliverability and, importantly, high recovery factors.”

Bonboni-1 exploration well

Bonboni-1, the first exploration well in the northern portion of Block 58, was drilled in water depths of nearly 2,000 meters approximately 45 kilometers from APA’s discoveries in the Maka-Kwaskwasi-Sapakara-Keskesi trend. In the primary Maastrichtian and Campanian objectives, the well encountered high quality, water bearing reservoirs. In a Maastrichtian objective, the well penetrated 16 meters (52 feet) of net pay in a single zone, consisting of low-GOR, 25-degree API black oil. The aerial extent of this pay zone is not sufficient to support a commercial development, and the well will be plugged and abandoned.

Tracey Henderson, SVP of Exploration, commented, “The results at Bonboni extend the proven petroleum system to the northern boundary of Block 58, confirming the presence of high-quality reservoir sands and the generation and migration of black oil. With the critical elements of reservoir and charge now proven, our focus turns to integrating well data to prioritize the numerous exploration prospects we have mapped in both blocks 58 and 53.”

Next steps in Block 58 and other activity

Following completion of operations at Bonboni, the Maersk Valiant will drill the Krabdagu exploration prospect, located 18 kilometers east of SPS-1. Krabdagu has a similar seismic signature to the two successful wells at Sapakara and the discovery well at nearby Keskesi. Success at Krabdagu could materially increase the scope and scale of a development in the central portion of Block 58. The company envisions a potential black oil development hub that would accommodate production from Krabdagu, Sapakara and Keskesi.

The Maersk Developer is nearing contract completion and TTE will release the rig once operations are finished at SPS-1. APA will mobilize the Noble Gerry de Souza to Block 53 early in 2022, where it has one committed well and options for two additional wells.

About APA

APA Corporation, through its consolidated subsidiaries, explores for and produces oil and gas with operations in the United States, Egypt and the United Kingdom and exploration activities offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Specific information concerning Suriname, ESG performance and other investor-related topics are posted at investor.apacorp.com.

Forward-looking statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in Apache’s Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 25, 2021, and in our quarterly reports on Form 10-Q for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Contacts

Investor:	(281) 302-2286	Gary Clark
Media:	(713) 296-7276	Phil West
Website:	www.apacorp.com

APA-G