APA Confirms Positive Flow Test Results at Krabdagu Well

APA Corporation APA recently declared that it has completed a flow test at the Krabdagu exploration well (KBD-1) on Block 58, located in the offshores of the South-American country of Suriname, with its joint venture partner – TotalEnergies TTE. APA holds a 50% working interest in the block, and TotalEnergies, the operator of the block, also owns a 50% working stake.

The KBD-1 well, situated roughly 18 kilometers southeast of Sapakara South, was drilled by the offshore drilling operator Maersk Drilling’s Maersk Valiant drillship at a water depth of 780 meters and came across about 90 meters of net oil pay in the high-quality Maastrichtian and Campanian reservoirs, per TTE’s statement from February 2022.

Per APA, the flow test data, which was collected in two lower intervals — the Upper Campanian and the Lower Campanian — shows oil-in-place resource of around 100 and 80 million barrels (MMbbls), respectively, linked to the KBD-1 well.

The Houston, TX-based independent energy firm elaborated that the Upper Campanian Zone results show 32 meters (105 feet) of net oil pay, a high-quality reservoir with 400 to 500 millidarcy permeability, 35-degree API and 2000 to 2300 scf/bbl GOR. APA also said that the buildup test indicated connected resources of more than 100 MMbbls of oil-in-place.

Moreover, the Lower Campanian Zone results indicate 32 meters (105 feet) of net oil pay, modest reservoir quality with 60 to 80 millidarcy permeability, 37-degree API and 2500-2800 scf/bbl GOR. The buildup test also showed connected resources of more than 80 MMbbls of oil-in-place.

John J. Christmann IV, APA’s CEO and president, stated that results from the Krabdagu flow test in two lower intervals are aligned with the company’s expectations and provide the data that fast-tracks APA’s understanding of the field and will shape future activity. “The connected resource demonstrated from the flow tests at Krabdagu combined with the results from Sapakara South, are a significant step forward in advancing a project in this area of Block 58,” he added.

France-based TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. The company has operations in more than 130 countries across five continents. The company was founded in 1924.

Founded in 1954, APA Corporation is one of the world's leading energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Geographically, the company’s operations are in the United States, Egypt and in the North Sea of the United Kingdom. The company also holds acreage in offshore Suriname (South America) and other international locations.

APA currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space are Enerplus ERF and Whiting Petroleum WLL, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enerplus stock has gone up 87.6% in a year. The Zacks Consensus Estimate for Enerplus’ 2022 earnings has been revised 31.8% upward over the past 60 days.

The Zacks Consensus Estimate for ERF’s 2022 earnings is projected at $3.40 per share, up about 250.5% from the projected year-ago earnings of 97 cents.

The Zacks Consensus Estimate for Whiting’s 2022 earnings is pegged at $25.31 per share, up 87.6% from the projected year-ago earnings of $13.49.

The Zacks Consensus Estimate for WLL’s 2022 earnings has been revised about 13.2% upward over the past 60 days from $22.36 per share to $25.31.

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