RE:RE:RE:DEC-2-2019: APACHE UPDATEChedda1 is correct.
Running casing through the first 2 target sections is a positive read-through.
Moreover, (in my opinion) Apache's comments regarding conducting 'various testing activities in two distinct upper cretaceous play types' is extremely encouraging.
It takes approx. 24-48 hours to rig up and run wireline downhole to assess if they encountered hydrocarbons or not. If this well was dry, it would make little sense for Apache to stay at this location when they are committed to drill two more exploration wells.
In this case, Apache has been running multiple tests in the 2 target sections for (what I would suspect) roughly 2 weeks. This testing here is extensive - have never heard of a company spending this much time evaluating a dry well. Never!
Apache also mentions they are 'making equipment modifications to the rig' and will now drill a third deeper target with further testing and evaluations (as appropriate). My read through is that Apache might be modifying the rig so they can perform a DST (flow test).
Again, I see more positive implications with this news release then negative. Given the 'heavy oil' fiasco - it would make sense for Apache to be prudent. Gather all the information before releasing anything to the public.
Remember, Apache ahs 100% interest in this well. It will be important for them to prove up the play and resource as much as possible before contemplating farming down the asset which (according to the CEO) is in their long term game plan.
As Tudor, Pickering, Holt & Co stated: "we'll have to wait a little longer for data once the company is prepared to characterize results."
Front row seat to the most exciting offshore hydrocarbon basin in the world. Let the other E&Ps do the de-risking and prove out the plays that are around us.