APA Corp. (NASDAQ: WHAT) announced late Thursday that it had successfully drilled and tested a well flow off the coast of Suriname in a reservoir that may contain more than 200 million barrels in reserves.
The company said Sapakara South-2 well evaluation encountered 118 ft of net high-grade oil reserves in the Campano-Maastrichtian reservoir.
APA (APA) and 50-50 partner TotalEnergies (NYSE:TTE), the project operator, drilled two appraisal wells with two more planned to be drilled in Block 58 in Suriname.
Offshore drilling in Suriname is being closely watched because of huge discoveries offshore neighboring Guyana, although APA ( APA ) and Total ( TTE ) ended drilling last year on another part of block 58 after failing to find commercial oil.
The partners have so far announced five discoveries in block 58, prompting forecasts that the first oil will flow in 2025 and that Suriname could produce 650 thousand bbl/day by 2030.
APA Corp. (APA) is likely to return at least 10% of its market capitalization to shareholders this year, writes Michael Wiggins de Oliveira in an analysis recently published on Seeking Alpha.