US independent Apache is continuing work on appraisal plans for the first two discoveries at its Block 58 off Suriname, with the scheme for the successful Maka Central-1 find expected to be finalised and submitted in the second quarter.

Appraisal planning is also underway for the recently-announced Sapakara West-1 discovery, Apache said in a first-quarter operations report.

"We will advance the exploration programme and follow-on appraisal activity in Block 58 offshore Suriname," chief executive John Christmann said in a release.

The news follows comments by the chief executive of partner Total that the Suriname discoveries look "quite interesting" in terms of project sanctions.

The breakthrough Maka find, announced in January, and the Sapakara wildcat announced last month have tested multiple stacked targets in the Upper Cretaceous-aged Campanian and Santonian intervals, with both discoveries described as highly significant, both in terms of oil quality and volume.

API oil gravities on the discoveries ranged from 35 to 45 degrees.

Apache recently spudded the Kwasikwasi wildcat in Suriname, chasing a third consecutive discovery on Block 58. The target is located approximately 10 kilometres north-west of Sapakara West-1.

The US company is using the drillship Noble Sam Croft in what is billed as a four-well campaign.

The fourth exploration target is Keskesi, which will be drilled approximately 20 kilometres south-east of Sapakara West-1.

Permian winds down

Apache is advancing its work off Suriname just as it is winding down its shale operations in the US Permian basin.

The company announced earlier this year it would halt all US drilling and completion activity in response to the low oil price environment. The Permian has already seen a drastic pull back in activity, with operators dropping rig and pressure pumping crews and curbing output.

Apache said it is down to one Permian rig from a quarterly average of seven, and that it is currently drilling its last well. The rig is expected to be released in mid-May.

In its operations report, Apache said it was "optimising cash flow through shut in/curtailment programme" in the Permian, but did not give specific details. The company also said it was pursuing land trades to block up its acreage position in core areas in the basin.

Losses

Apache reported a loss of $4.5 billion or $11.86 per diluted common share during the first quarter of 2020, driven by non-cash impairments related to its legacy vertical developments in the Permian. When adjusted for the impairments and other "certain items", Apache's loss amounts to $51 million, or 13 cents per share.

By comparison, the company reported a much smaller net loss of $47 million, or 12 cents per share, in the first quarter of 2019.

Apache's first-quarter reported production amounted to 468,000 barrels of oil equivalent per day, compared to 502,877 boepd in the same period in 2019.

Exploration

Apache advances Suriname appraisal schemes