FEB-21-2021: APACHE EARNINGS CALL Some interesting comments out of Apache this week about their pursuit of unlocking a second play type on block 58 offshore Suriname. Emphasis on targeting shallow water reef carbonates that potentially extends across Block 58 - string of pearls - clearly usable is seismic.
This play type will be first tested on Keskesi where the well will be deepened to validate the play. If it works, there a number of repeatable prospects to follow up on.
Success here would certainly bode well for Apache Block 58 and other adjacent licenses. As they say prolific basins typically grow in both size, scale and value over time as additional play types are de-risked.
As the CEO of Apache has stated often - Block 58 is a game changer for the company. A company that has a market cap presently of more than $6B.
John Christmann, Apache CEO
Yes, great question. I mean, you know, when we talk about Block 58 in the first place, we laid out more than a handful of different play types and quite frankly our first three play types are all upper Cretaceous. Campanian. Santonian are the first two and then the third one is actually Turonian which is also upper Cretaceous. We attempted to get down to the Maka Turonian, but we were unable to do to pressure. With the Neocomian play that we are pursuing, it is actually a lower Cretaceous target as well. You know, when I talk about the upper Cretaceous, Campanian and Santonian, they're really deep-water channel turbidites. But the Neocomian is lower Cretaceous and it's more shallow-water carbonate reef buildups and so in others. I will tell you that we're not through the first two targets. We've got two Neocomian targets to test in Keskesi.
And so we're in the process of doing that. We'll be back to drilling, but these are carbonate reefs. They're pretty visible on the seismic, but this will be the first test for us, and this was an optimal place to go on down through the source rock to the Neocomian, and we're anxious to see. But it is exploration, they're visible. If it were to work and bear the right fluids, then it sets up a whole string of these that are down there. So it's a play concept test. And this just was the logical best place to do the first test for the Neocomian.
Leo Mariani, Analyst
So just to confirm, you guys certainly believe this is present across your block and potentially in other areas in Suriname. And is this kind of the first test that you're aware of in the basin?
John Christmann
No. I mean, I'd say when we've got multiple domains across the block. I mean, what you've got to understand is with the geology here, there are play types that are present in as you start thinking about other play types in those portion of the block that are present in some areas but not everywhere. So it gets back down to what the settings were like when it was laid down and I said this was lower Cretaceous, it's more shallow water carbonate reef buildups. And so there's probably a trend of those. There is a trend that moves across our block. But we're focused mainly on our block. And this is the first one, obviously it is exploration. So obviously the chance of success you put in there is likely not going to work. But if it does work, it does set up some more targets for us. But it is an exploration well for a reason. It is a play concept, but if it happens to work, we've got more of these on the block that would be additive and potentially could become part of whatever you did in terms of an FID somewhere down the road.
David Heikkinen, Analyst
Also just a couple of quick hits, kind of good luck with the Neocomian. It sounds like, I could characterize it as a string of pearls-type prospect or trend that you hit this one and then you'll have other high spots that are just going to follow along the same depth position.
John Christmann, Apache CEO
Yes, I mean I would say it's how you could think about it, right. I mean, definitely it's all carbonate reefs working a shallow water environment.
David Heikkinen, Analyst
That's what you're seeing. So you're seeing that type of string of pearls is what I was getting at.
John Christmann
Yes, there are multiple targets that this would set up, but it's deep, and there's risk, right. But we'll see what happens?