Apache Corporation (NYSE:APA) news concerning a “significant” oil discovery has APA stock heading higher on Tuesday.
According to an Apache Corporation news release, the company’s Maka Central-1 well drillings have been a success. This includes discovering large segments of oil pay and light oil and gas condensate pay.
The drilling at the well reveals a total of 240 feet of oil pay at the well. When it comes to light oil and gas condensate pay, this number is sitting at 164 feet. The company is planning to move forward with appraisals of these pays.
More positive signs come from further drilling at the Maka Central-1 well. This saw it discover significantly over-pressured, oil-bearing reservoirs at 20,670 feet. The company plans to further test this and notes that these are good signs for the well.
John Christmann, President and CEO of Apache Corporation, says this about the results affecting APA stock.
“The well proves a working hydrocarbon system in the first two play types within Block 58 and confirms our geologic model with oil and condensate in shallower zones and oil in deeper zones. Preliminary formation evaluation data indicates the potential for prolific oil wells. Additionally, the size of the stratigraphic feature, as defined by 3-D seismic imaging, suggests a substantial resource.”
The Apache Corporation news release notes that the company will also be moving forward with further tests. That includes drilling at the Sapakara West-1, which sits roughly 12 miles southeast of Maka Central-1.
APA stock was up 25.59% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.