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APA and TOTAL Cease Keskesi Well Drilling in Offshore Suriname

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APA Corporation (APA - Free Report) and partner TOTAL SE had to involuntarily halt drilling operations and services at the Keskesi East-1 exploration well off the Suriname coast due to substantial pressure increases.

Earlier, APA and Total made a significant oil discovery in Block 58 offshore Suriname. Notably, APA owns a 50% participating interest in Block 58, while TOTAL is the operator of the block with the remaining interest.

The Keskesi East-1 well was drilled using the Noble Sam Croft drillship at a water depth of about 725 meters. The well discovered volatile oil and gas condensate in the Upper cretaceous-aged Campanian and Santonian intervals, and continued the drilling toward deeper Neocomian-aged targets.

With advancements in the process, the well encountered a higher-than-normal increase in pressure, which the partners figured could go beyond the wellbore design capabilities and pressure control equipment.

As a result, APA and TOTAL chose to complete drilling operations at Keskesi prior to reaching the Neocomian targets. Notably, both companies will start working on designing a new wellbore and drilling program for a safer test of the Neocomian targets for further analysis.

The additional drilling at the Keskesi well identified hydrocarbons in the Lower Cretaceous interval and a carbonate depositional system above the top Neocomian target. However, the data failed to provide detailed information regarding the Neocomian targets.

Upon the completion of operations, the Noble Sam Croft drillship will be released. Further, APA along with partner TOTAL is likely to start drilling at the Bonboni well on the northern portion of Block 58.

Company Profile & Price Performance

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

Shares of the company have outperformed the industry in the past month. Its stock has gained 25.3% compared with the industry’s 21% growth.

 

 

Zacks Rank & Stocks to Consider

APA currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Repsol SA (REPYY - Free Report) and Royal Dutch Shell Plc , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Repsol’s earnings for 2021 are expected to rise 15.7% year over year.

Shell’s earnings for 2021 are expected to increase 19.9% year over year.

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