JUNE-15-2020: CITI UPGRADES APACHE, CITES SURINAME UPSIDECiti upgraded Apache earlier this week from $13 (market cap of US $4.9B) to $18 (market cap of US $6.8B).
Underlying the upside in Apache's valuation was their lucrative position offshore Suriname. Scott Gruber at Citi sees additional upside in Apache's Suriname exploration - estimating the "embedded value of Suriname within Apache's stock currently stands at ~1.5-2 large FPSOs."
Embedded value of 1.5 to 2 large FPSO's assumes production levels of 440k boe/day. Based on these figures, cited by Citi - Sapakara West and Maka Central are likely to be comparable in size to Liza. Roughly 1 billion barrels of recoverable resource for each of Apache's discovery.
Simply amazing - been in the industry for a long time. Never seen anything like this before in terms of just how prolific this basin is.
Very eager to see what Exxon/Hess have in store for their re-commencement of exploration activty starting in 2H-2020. Very interested to see if they go back to Haimara to deeper.