APA Corporation and Partners Lagniappe Alaska and Santos Announce Successful Flow Test in Alaska’s North Slope at Sockeye-2 Exploration Well

Rhea-AI Summary

APA and partners Lagniappe Alaska and Santos have announced successful flow test results from the Sockeye-2 exploratory well in Alaska's North Slope. The well, drilled to approximately 10,500 feet, encountered a high-quality Paleocene-aged clastic reservoir with 20% average porosity.

The vertical well, completed in a single 25-foot interval at 9,200 feet TVD without stimulation, averaged 2,700 barrels of oil per day during the final flow period of the 12-day production test, without artificial lift. APA holds a 50% working interest in the 325,411-acre exploratory block, while Lagniappe and Santos each hold 25%.

The test results indicate significantly higher reservoir quality compared to similar topset discoveries to the west, extending the Brookian topset play first established with the Pikka discovery in 2013.

Positive

• Successful flow test yielding 2,700 barrels of oil per day without artificial lift
• High-quality reservoir with 20% average porosity
• Significantly higher reservoir quality compared to similar discoveries
• Large exploratory block of 325,411 acres with 50% working interest

Negative

• Further appraisal drilling needed to determine ultimate discovery size
• Next steps in Alaska program still under evaluation

Insights

Petroleum Engineer

APA's Sockeye-2 well demonstrates exceptional reservoir quality with impressive unstimulated flow rates, significantly derisking their Alaska exploration program.

The Sockeye-2 exploration results reveal technically significant findings that substantially enhance APA's North Slope position. The well encountered a Paleocene-aged clastic reservoir with 20% average porosity—an excellent value that indicates superior fluid storage capacity and movement potential.

What's particularly impressive is the well's production performance: 2,700 barrels of oil per day from a single, unstimulated 25-foot interval without artificial lift. This demonstrates exceptional natural reservoir energy and permeability—a critical factor for commercial viability in remote Arctic environments.

The explicitly stated "significantly higher reservoir quality compared to similar topset discoveries to the west" indicates this eastern extension of the Brookian play possesses superior characteristics than previously explored areas. This meaningfully extends the productive potential first established with the Pikka discovery in 2013.

From a technical perspective, achieving such productivity from minimal reservoir contact (just 25 feet of completion interval) at approximately 9,200 feet TVD suggests excellent development potential. Wells that produce efficiently without stimulation typically require less intervention, simplifying operations in Alaska's challenging environment and potentially improving economics.

While the ultimate field size remains undetermined pending further appraisal, these initial flow characteristics validate APA's geological models and substantiate their exploration strategy in the 325,411-acre block where they hold a controlling 50% working interest.

Energy Financial Analyst

APA's Sockeye-2 successful flow test validates their Alaska strategy, derisks additional prospects, and strengthens their diversification beyond core assets.

This successful flow test represents a material derisking event for APA 's Alaskan exploration program. As the majority partner with a 50% working interest in the 325,411-acre block, APA gains disproportionate exposure to this discovery's upside potential and follow-on opportunities.

The technical results are particularly encouraging. The 20% porosity and 2,700 barrels of oil per day flow rate without stimulation or artificial lift demonstrate reservoir characteristics that typically translate to more efficient recovery operations. Such natural productivity is especially valuable in the North Slope region, where operational complexity and costs can be significant challenges.

CEO Christmann's statement that the results "confirm our geologic and geophysical models and derisk additional prospectivity in the block" signals this isn't merely an isolated success but potentially opens multiple follow-on targets. Partner Bill Armstrong similarly highlighted that they've "identified analogous anomalies to investigate," indicating a systematic exploration approach with multiple prospects.

This discovery extends the proven Brookian topset play eastward from the original Pikka discovery, effectively expanding the productive footprint across their acreage. For APA, whose strategy has included diversifying beyond their core assets, this Alaska success provides a meaningful alternative growth vector in conventional resources.

The need for "further appraisal drilling" acknowledges additional work is required to determine the discovery's ultimate size, but the initial flow test clearly demonstrates commercially viable productivity—a critical milestone in establishing resource potential in this frontier region.

HOUSTON, April 24, 2025 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) and its partners Lagniappe Alaska, LLC, an Armstrong company, and Oil Search (Alaska), LLC, a subsidiary of Santos Limited, today announced the results of the successful flow testing of the Sockeye-2 exploratory well. Apache holds a 50% working interest, operator Lagniappe and partner Santos each hold 25% working interests in the 325,411-acre exploratory block located on state lands of the eastern North Slope.

As previously announced, the Sockeye-2 well was successfully drilled to a depth of approximately 10,500 feet and encountered a high-quality Paleocene-aged clastic reservoir with an average porosity of 20%. The vertical Sockeye-2 well was completed in a single 25-foot interval at approximately 9,200 feet TVD, without stimulation. The well performed in line with expectations during the 12-day production test, averaging 2,700 barrels of oil per day during the final flow period, without artificial lift. The results of the flow test indicate significantly higher reservoir quality compared to similar topset discoveries to the west. Further appraisal drilling will determine the ultimate size of the discovery, but the flow test demonstrates the exceptional productivity of this shallow-marine reservoir.

“We are excited about the performance from the Sockeye-2 well, which could greatly benefit the state of Alaska and the U.S.,” said Bill Armstrong, CEO of Armstrong Oil & Gas. “This discovery significantly extends the prolific Brookian topset play first established with our Pikka discovery in 2013.  We have identified analogous anomalies to investigate following on this success.” 

“The results from the Sockeye-2 flow test are consistent with our expectations, demonstrating high quality reservoir, confirming our geologic and geophysical models and derisking additional prospectivity in the block. We will evaluate the data from the Sockeye-2 well to determine the next steps in our Alaska program,” added John J. Christmann, APA Corporation CEO. 

About APA

APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2024, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Contacts

Investor: (281) 302-2286
Media: (713) 296-7276        
Website: www.apacorp.com

APA-G

FAQ

What were the flow test results of APA's Sockeye-2 well in Alaska?

The Sockeye-2 well averaged 2,700 barrels of oil per day during the final flow period of its 12-day production test, without artificial lift.

What is APA 's working interest in the Alaska North Slope project?

APA holds a 50% working interest in the 325,411-acre exploratory block, with partners Lagniappe and Santos each holding 25%.

What reservoir characteristics were found in APA's Sockeye-2 well?

The well encountered a high-quality Paleocene-aged clastic reservoir with 20% average porosity at approximately 10,500 feet depth.

How does the Sockeye-2 discovery compare to other North Slope findings?

The results indicate significantly higher reservoir quality compared to similar topset discoveries to the west, extending the Brookian topset play established in 2013.