U.S. independent E&P firm Apache Corp. reported on Thursday net losses of $397 million in the second quarter of 2020, alongside a new oil discovery on Block 58 offshore Suriname.
The net loss attributable to shareholders was driven by significantly lower revenues from oil production during second quarter compared to the previous year, which fell from $1.4 billion in Q1 2019 to $513 million during the same period this year. Apache’s gas revenues totalled $184 million during second-quarter, down from $210 million a year earlier.
In terms of production, the company recorded total oil volumes of 221,326 barrels per day (Bpd) and natural gas production of 850.3 million cubic feet per day (Mmcf/d) — down 4% and 8% respectively year-on-year.
Average oil prices realized during the period fell by nearly 60% y-o-y to $25.77 per barrel. Natural gas prices declined 19% y-o-y to average $1.68 per thousand cubic feet, Kallanish Energy reports.
“Our continued success in Suriname, along with the steps we’ve taken to streamline our organization and further strengthen our financial position, prepare us well for the long term,” said CEO John J. Christmann IV.
“Our objectives remain unchanged despite the extreme market volatility in 2020,” he said in a statement. “We will budget conservatively and return free cash flow to investors, initially in the form of debt reduction; maintain a balanced and diversified portfolio; and prioritize investment for long-term returns over production growth.”
New discovery off Suriname
The oil discovery at the Kwaskwasi-1 well, in Block 58, offshore Suriname, was announced alongside Apache’s Q2 earnings statement. The discovery follows announcements in January and April this year of discoveries at the Maka Central-1 and Sapakara West-1 wells.
The Kwaskwasi-1 well was drilled to a depth of approximately 6,645 meters (21,800 feet) and successfully tested for the presence of hydrocarbons in multiple stacked targets. Apache stated that initial test results have found at least 278 meters (912 feet) of net oil and volatile oil/gas condensate pay in two intervals.
Apache also confirmed that a fourth exploration prospect, located in Block 58, Keskesi East-1, will be drilled immediately following conclusion of operations at Kwaskwasi.
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