21. Suriname – Block 58, Apache, Maka Central #1 Prospect

Maka well-Block 58-Apache-Map MCAL
21. Suriname – Block 58, Apache, Maka Central #1 prospect V.2.12.19

Apache Block 58
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Apache Block 58 – InvestorApachecorp.com 1 Nov 2019.
Suriname-Bl.58 - Apache- Bloomberg, 27/10/19
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Suriname-Bl.58 – Apache- Bloomberg, 27/10/19
  • Suriname Offshore Licences and Wells
  • Suriname Licensing Areas 10/2019_Staatsolie
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    Suriname Licensing Areas 10/2019_Staatsolie
  • Update 07 January 2020:
  • Official startdate Suriname Black Gold Rush & Oil Boom!
  • Significant discovery ! First oil offshore Suriname !
  • Maka Central-1 confirms geologic model with 73 meters (240 feet) of oil pay and 50 meters (164 ft) of light oil and gas condensate pay.
    Update 23 december 2019:
  • Apache and Total joint venture in Block 58 with Total as Operator. Deepening and testing operations continue.
  • My own preliminary, best educated guess?
    Maka Central #1 most probably is not a giant discovery.
  • Commercial amounts (?) of hydrocarbons in 2 Upper Cretaceous horizons…
  • Block 58 obviously has many other viable prospects with potential. As geologically, in many aspects, it lines up with the Liza Golden lane.
    Based on which Total is farming in, precisely at this stage and preliminary well results.
  • My own question and concern ? If you would have 100% W.I. in a Golden Block, as Apache in block 58.
    Would you also be so clever to farm-out 50 % and hand over voluntarily, for US$ 100 milion, half of your  wealth-2-come ??
  • Only if you are uncertain and doubt about the prospectivity ? If you just want to make sure, for the moment being, that you get at least your sunk cost back ? Or if you are a global philantropist ? Apache themselves may not be very convinced about the prospectivity, farming out exactly at this stage ?
  • Why? Obviously Total is the one with deep pockets. That does not want to miss its late start in the GS basin oil boom. Paying a heavy king’ ransom for that.
  • Apache does not have the big financial capabilities for offshore development. Is an independant, first entrant, that wheels&deals with the discovery afterwards.
  • Under the terms of the agreement, Apache and Total will each hold a 50 percent working interest in Block 58, which comprises approximately 1.4 million acres in water depths ranging from less than 100 meters to more than 2,100 meters. Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total.In exchange for a 50-percent working interest, Apache will receive various forms of consideration, including: $5 billion of cash carry on Apache’s first $7.5 billion of appraisal and development capital;  25% cash carry on all of Apache’s appraisal and development capital beyond the first $7.5 billion; various cash payments in conjunction with closing of the joint venture agreement and future production from joint development projects; and reimbursement of 50% of all costs incurred to date in Block 58.   Apache and Total have also agreed to bear their proportionate working interest share of costs on all future exploration wells. The transaction has received all necessary approvals from Suriname and is expected to close within three days
  • Total? Was rather late in “ discovering “ the prospectivity of Guyana Basin, certainly not a first entrant.
    This block and area, as well as a major area of offshore Suriname, was free to apply for a license when I worked with SOM. Without having to pay a US 100 million bonus ! Total never showed any interest by that time…
  • Bonus?
    A tip for SOM.
    Include in your future PSC’s this following clause:
  • 25% of the amount of any bonus paid to an IOC for a farm-in in Suriname? Should be paid/revert to SOM.
  • Apache got the license just on a work commitment program (3D + one +- or more wells).
    Without paying a cent as signature bonus.
  • And now gets US$ 100 million, for wheeling&dealing/selling a 50% W.I. in the Block 58 !
  • Sharpen your pencils with an added “ bonus clause “ in case of farm-out/in in the PSC…
  • Negotiate and get a signature bonus for any new license and/or farm-in with bonus paid. Now that GS basin is a proven province.
    Get money for the value of your highly prospective blocks ! Do not give them away as a poor, innocent child.
  • Total is now apparently in a real rush and utterly keen to farm-in in several blocks in Guyana and Suriname. To participate and not to miss the oil boom and black gold rush.
  • Shell?
    As one of the first entrants since long ago in the GS basin? And discovering in fact the first live oil, the first real teaser offshore in Abary-1 well ??
  • Rushed away from Serendipity, rushed away from 6 billion barrels.
    Farmed-out their 50% W.I. to Hess and CNOOC, these 2 now with utterly happy faces and pockets, based on the 6 billion barrels found.
    Just in 4 years.
  • How can one as a most successful, longstanding, resilient global firm, with a global strategy, relinquish all, really all, 100% of its own W.I. in a GS whole basin ?
    For me ? As a simple global explorer since 42 years, completely but really completely unbelievable and incomprehensible.
  • Incredible, in my humble opinion.
  • Apache Business: Stocks and Value.
  • Steven Keenan, Apache’s senior vice president of worldwide exploration, resigned 23/10/19.
  • Company’s shares and bonds tumbled, cost to insure against default surged.
  • Shares fell as much as 11% on Friday. Biggest intraday drop since January 2016.
  • Stock was down 5.6% (=$1.30) to $21.93 (from $23.23) at 1:34 p.m.
  • $170 Million larger-than-expected loss for third quarter.
  • Stock has plunged by 55 percent since September 2018.
  • First results Maka Central 1 prospect, multiple targets, by end November 2019 ?
  • Wall Street’s reaction to Keenan’s sudden departure driven by the fear that his exit portended ominous news for the Suriname results (dry hole??).
  • Apache declined to say why Keenan left, insisted it wasn’t related to Suriname.
  • Yeah, but? What if?
  • The main target, e.g. in the Tertiary, already appeared to have shown up dry, (just) before resigning on 23/10/19??
  • Apache aims to switch gears from exploration mode to development
  • Bank of America Merrill Lynch last week touted the Suriname prospect as potentially game-changing for Apache.
  • It “has potential to reset the investment case,” Merrill Lynch’s analyst Doug Leggate, Oct. 18 note to his clients.
  • Leggate upgraded his rating on the stock, said a single good well (Maka prospect could translate into a $6-a-share benefit for Apache ??
  • My own question? Are the possible reserves of Maka (how many barrels reserves prognosed by the way ? adding how much with respect to total proven reserves of Apache?) enough to cause a reset and a share boost of $6?
  • Apache: third-quarter 2019 production 451,000 barrels of oil equivalent (BOE) per day. Excludes Egypt non-controlling interest and tax barrels, was 391,000 BOE; U.S. production of 266,000 BOE per day.
  • http://investor.apachecorp.com/news-releases/news-release-details/apache-corporation-announces-third-quarter-2019-financial-and/?fbclid=IwAR3nQ4EMTKcNKbSpqF3kZDx7IE185p8-RW4atoPzxZ-nL5Aef5H7aV1rtTk
  • Petroleum Geology Block 58
    • Apache, Block 58 & Surroundings in Suriname
  • Drillship/well location:  7.5154 N / 56.22652 W:
  • Very scarce information has been released pre/syn drilling of this well. Neither the official well location.
  • Noble Sam Croft, 7 mi (11.3 km) from offshore Suriname/Guyana median line
  • Day rate $ 170,000 approx.
  • Maka Central #1 prospect, multiple targets.
  • 3-D and 50 significant prospects mapped…
  • Spudded September 24th 2019. TD about November 2019 at around 6,325 m (20,751 ft).
  • Will be deepened/extended to 6,900 m (decided on 2 dec. 2019).
  • Liza-1? 17,825 ft, TD
  • Option to use the rig for two additional well in block 58. Only if Maka Central 1 is a major discovery, I would assume.
  • The Haimara-1 well, encountered approximately 207 feet (63 metres) of high-quality gas condensate-bearing sandstone reservoir and was drilled to a depth of 18,289 feet (5,575 metres) in 4,590 feet (1,399 metres) of water.
  • Haimara is located at the south eastern end of the 6.6 million acres Stabroek Block and is the closest point to Block 58, for which a discovery has been made.
  • Maka well-Block 58-Apache-Map MCAL
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    Maka well-Block 58-Apache-Map MCAL
    • Most (un)fortunate?
  • Share price $6 up?
  • A grand homerun in the upper deck?
  • Or $2 down…?
  • A lousy strike-out. With 3 straight, smoking 100-mile-hour fastballs.  Without even swinging?

Faîtes vos jeux. Rien ne va plus.

Somewhere end 2019 we will know ?

Hopefully very first Suriname offshore major discovery  and Christmas present 0n Boxing day 2019 ?

Or a brand new member of the “ Suriname 22/6 Dry Hole Offshore/Nearshore Family “ @2019 ?

Update, 2 dec. 2019 (Ref. Offshoreenergytodsy.com):

  • The company said that, upon reaching a depth of approximately 6,200 meters, it had elected to conduct various testing activities in two distinct Upper Cretaceous play types.
    Following the completion of these tests (…fluid samples, DST’s ?) the company will set casing, make equipment modifications to the rig, and resume drilling in mid-December to evaluate a third play type in the Cretaceous (Albian carbonate??).
  • The new target depth of the well is approximately 6,900 meters (TVD…or sidetrack with depth measured along hole??).
  • Following the drilling operations, further testing and evaluation will be conducted as appropriate.
  • Haute Sranankondre Light Oil & Condensate Cuisine?
  • ” Michelin Subsurface 4-Stars “?
     Alias “ The Liza & Payara & Maka Kitchen “?
  • Apache, Block 58 & Surroundings in Suriname.
  • Kitchen map, Halliburton, 2018:
  • Red area where Bl. 58 is located,
  • Indicates the late mature kitchen area of the Canje source rocks.
  • Expelling light oil and condensate since some 5 Ma (End Neogene).
  • Inserted @ Jan. 07, 2020:
  • Very light oil found in Turonien, overlying the expelling late mature kitchen. With overpressures. How much? Some  15 000+ psi, my best guess.
  • Condensate mainly in 2 higher, U-Cret. intervals.
  • Block 58 is indeed part of Golden Lane and Liza-Payara-Maka Haute Cuisine 4* subsurface kitchen, my best guess.
BasinMod Liza_Halliburton
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BasinMod Liza_Halliburton-2018
  • Seismic SW-NE section of dry hole Eagle, Guyana
  • Located some 20 km west, of the southern half of Block 58.
  • G&G analog for Maka prospect, presently (29/11/19) drilling ahead ?
  • (Hope not a dry hole analog).
  • Multiple target(s)
  • Tertiary ? 
  • Upper Cretaceous fans
  • Albian carbonates (shelf or reef type ?)?
  • Ref. cgxenergy.com.
  • Corentyne Offshore PPL-Composite Dip Line and Depositional Model - cgxenergy.com
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    Corentyne Offshore PPL-Composite Dip Line and Depositional Model – cgxenergy.com

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