Apache Corp. reported a loss of $4.5 billion during the first-quarter 2020. When adjusted for certain items that impact the comparability of results, primarily noncash impairments related to the company’s legacy vertical developments in the Permian basin, Apache reported a first-quarter loss of $51 million. Net cash provided by operating activities was $502 million.
In early March, Apache noted plans to reduce activity in Egypt and the North Sea and to eliminate all US drilling and completion activity, resulting in a $650 million decrease in planned upstream investment compared to the initial budget (OGJ Online, Mar. 12, 2020). Some 60% of the revised 2020 investment will be in international assets, compared to 45% in the previous budget.
First-quarter reported production was 468,000 boe/d; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 423,000 boe/d.
During the first quarter, Apache operated an average of 21 rigs and drilled and completed 44 gross-operated wells worldwide.
US
In the US, Apache operated an average of seven rigs, drilled and completed 24 gross-operated wells, all of which were in the Permian basin, and reported production of 283,000 boe/d.
Permian basin production averaged 273,000 boe/d, including oil production of 97,000 boe/d. Following the drop in oil prices in early March, the company decided to reduce its rig count to zero in the Permian. The company is down to one rig in the Delaware basin, which is currently finishing its last well. After which, the company will have 70 drilled and uncompleted (DUC) wells in the unconventional Midland and Delaware basins, 15 of which are in Alpine High.
The company averaged four rigs and placed 12 wells on production in the Midland basin, all on multi-well pads. It substantially completed drilling its first 3-mile lateral pad. Completion of these five wells has been deferred due to the current price environment.
In the Delaware basin, Apache averaged three rigs and placed 11 wells on production. Alpine High production averaged 94,000 boe/d with a 39% liquids mix.
International
Internationally, the company operated an average of 14 rigs, drilled and completed 20 gross-operated wells, and reported production of 185,000 boe/d.
In Egypt, the company averaged 11 rigs, drilled and completed 16 gross-operated wells, and reported production of 116,000 boe/d, or 72,000 boe/d on an adjusted basis.
The company averaged two rigs in the North Sea and drilled and completed four gross operated wells during the quarter. Production of 69,000 boe/d was up 9% from the fourth quarter, driven by the high-volume Garten-2 well, which was placed on production in late January.
In Suriname, on Jan. 7, Apache (50% interest) and Total SA (50% interest) reported an oil discovery in Block 58 at Maka Central-1. On Apr. 2, the partners reported a second oil discovery in Block 58 at Sapakara West-1, and in the second half of April, began drilling on a third exploration well, Kwaskwasi-1, which lies 10 km northwest of Sapakara West-1. Following Kwaskwasi-1, a fourth exploration prospect, Keskesi East-1, will be drilled about 10 km southeast of the Sapakara discovery well.