StockNews.AI
APA
StockNews.AI
155 days

APA Corporation and Partners Lagniappe Alaska and Oil Search Announce Significant Oil Discovery in Alaska's North Slope at Sockeye-2 Exploration Well; Partners Proceeding with Further Evaluation and Testing

1. Sockeye-2 well encounter high-quality oil reservoir with 25 feet net pay. 2. Better-than-expected porosity and permeability improve outlook for the North Slope. 3. Additional potential pay zones found; results from flow tests awaited. 4. Second successful well in large 325,411-acre area shows significant promise. 5. CEO emphasizes confidence in geological models for future operations.

6m saved
Insight
Article

FAQ

Why Bullish?

The successful results from the Sockeye-2 well indicate strong potential for future revenue streams, similar to other successful exploratory wells in the past, such as the King Street-1 well discovery, which positively impacted stock prices due to increased investor confidence in the company's geological models and operational success.

How important is it?

The announcement reflects significant operational success, likely to influence investor sentiment and confidence, impacting stock price positively.

Why Short Term?

Initial results and upcoming flow tests will likely drive short-term market reactions. Similar prior announcements have led to immediate positive price movements.

Related Companies

OXYCVXHALXOMBP
March 17, 2025 16:15 ET  | Source: APA Corporation HOUSTON, March 17, 2025 (GLOBE NEWSWIRE) -- APA Corporation (NYSE, Nasdaq: APA) and its partners Lagniappe Alaska, LLC, an Armstong company, and Oil Search (Alaska), LLC, a subsidiary of Santos Limited, today announced preliminary results of the Sockeye-2 exploratory well. Apache holds a 50% working interest, operator Lagniappe and partner Santos each hold 25%. The Sockeye-2 well was drilled to a depth of approximately 10,500 feet and successfully encountered a high-quality reservoir with approximately 25 feet of net oil pay in one blocky, Paleocene-aged sand with an average porosity of 20%. As compared to recent regional field analogues in the Brookian play, the porosity and permeability are both better than expected, with the permeability to be confirmed through a planned flow test. Additional zones of potential pay were also encountered in the shallower Staines Tongue formation. The Sockeye prospect is amplitude supported across 25,000 to 30,000 acres, and confirms the partners’ geologic and geophysical models, derisking numerous additional prospects in the area. Wireline logging is complete and additional data collection is underway, including acquiring core and flow testing the well. The partners will provide further updates following the flow test results. “The Sockeye-2 test is the second successful exploratory well drilled by the partnership on a 325,411-acre position on state lands. The first well, King Street-1, was a new field discovery with oil in two separate Brookian Zones. The Sockeye-2 well further demonstrates the potential of the play, presenting an exciting opportunity in an active area of the North Slope with significant existing infrastructure,” said Bill Armstrong, CEO of Armstrong Oil & Gas. “We are very encouraged by the results at the Sockeye-2 well, which further proves our geologic and geophysical models and confirms a working hydrocarbon system. We look forward to the results of the flow test and sharing more information about the broader opportunity in Alaska,” added John J. Christmann, APA Corporation CEO. About APA APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.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,” “goals,” “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 APA’s Form 10-K for the year ended December 31, 2024, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission 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) 302-2286Media: (713) 296-7276        Website: www.apacorp.com APA-G

Related News