Leading independent energy firm
) announced that an extension well drilled on the Beryl Field has
encountered the highest initial production rate in the last ten
Located in the U.K. North Sea, the B72 well was explored as a
deviated well from the Beryl Bravo Platform. The well, through its
three separate Jurassic aged reservoir units, registered a total of
619 feet measured depth of net oil pay.
The well, which is termed as one of the best drilled since 2001,
presented a daily production rate of 11,625 barrels of oil per day
and 13.1 million cubic feet of natural gas.
Houston, Texas-based Apache acts as the operator of the Beryl
Field with 50% interest. The other partners of the asset are Hess
Ltd. (22.22%) - a subsidiary of
), Enterprise Oil Ltd. (22.78%) - an affiliate of
Royal Dutch Shell plc
), and U.K. based energy firm OMV Ltd. (5%).
In late 2011, Apache acquired the Beryl field along with the
Nevis, Ness, Nevis South, Skene and Buckland properties from
) for $1.25 billion.
We believe that this discovery will pave way for more
exploration opportunities in the coming days and will aid in
attracting more investors to develop the oil and gas fields in the
North Sea region.
We like Apache's large geographically diversified reserve base,
as well as its balanced exposure to natural gas and crude oil, and
multi-year trends in reserve replacement and production growth.
This allows management to allocate capital and resources to
Additionally, Apache exhibits a strong financial position that
will enable it to capitalize on investment opportunities and
strategic acquisitions, thereby improving growth visibility.
However, our optimistic view on the company is clouded by the
unstable gas/oil prices, geopolitical risks associated with
international operations and project costs overruns and delays.
Hence, we expect Apache to perform in line with the broader market
and maintain a long-term Neutral rating on the stock.
Apache currently retains a Zacks #3 Rank (short-term Hold
APACHE CORP (APA): Free Stock Analysis Report
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