Apache Corporation (NYSE: APA) rallied yesterday to close the day with gains of 26.79%. This followed the company’s announcement that, it had made a huge oil discovery at Maka Central-1 well, in Offshore Suriname’s block 58. The company is an operator of the drill and holds a 50% working interest, with Total holding the other 50% of the working interest.
Apache Corporation CEO, John J. Christmann stated that, the company was happy with the results that they had got at Maka Central-1. He added that, initial formation evaluation showed that, there was potential for high-volume oil wells. He further stated that, the stratigraphic feature as shown by 3D-Seismic imaging, indicated the presence of a significant resource. He also commented on the partnership with Total stating that, the company was looking forward to working together on the exploration and development of the new block.
Maka Central-1 tested positive for a significant presence of hydrocarbons on several targets, both on Santonian and the Cretaceous-aged Campanian intervals. The program that led to the discovery was composed of logging and drilling, formation pressures, wireline logs, and fluid analysis. Apache announced that Campanian has 164 feet of net hydrocarbon reservoir, while Santonian is deeper, and has 240 feet of an oil-bearing reservoir.
The announcement saw several rating experts turn bullish on this stock. One of them is Leggate of BofA Securities that changed the rating from neutral to buy after the news. Commenting on the move, Leggate stated that, the discovery started the process of de-risking exploration value.
Apache Corporation’s price action reflected this changing sentiment on the stock. In the day, the stock gapped up and rallied from an opening price of $29.95 to hit a high of $32.58, before closing the day at $32.51. Volumes in the day stood at 36.62 million.
About Apache Corporation
Apache Corporation is an energy company that explores and develops crude oil and natural gas. It is headquartered in Houston, Texas.