Apache Plans to Fast Track North Sea Find
Apache Corporation announced Wednesday that it plans to accelerate initial production from the Garten discovery in the UK North Sea from the first quarter of 2019 to the fourth quarter of this year.
The company made the announcement in its third quarter (3Q) financial and operational results, which revealed that Apache produced 51,000 barrels of oil equivalent per day from the North Sea in 3Q.
This was down slightly from the second quarter, Apache said, but the company announced that output is expected to increase in the fourth quarter.
Apache announced the Garten oil discovery back in March, describing it as a “significant” find. The Garten discovery well targeted a downthrown structural closure and encountered more than 700 feet of net oil pay in stacked, high quality Jurassic-aged sandstone reservoirs, according to Apache, which says the recoverable resource is expected to exceed 10 million barrels of light oil.
Apache has a 100 percent working interest in the Garten block.
Third Quarter Results
Apache reported total 3Q production of 476,000 barrels of oil equivalent per day in its latest results. Adjusted production was 401,000 barrels of oil equivalent per day, up 13 percent over 3Q 2017.
The company reported earnings of $81 million for 3Q. These results were said to include “a number of items outside of core earnings that are typically excluded by the investment community in their published earnings estimates, the most significant of which was a $75 million after tax loss incurred as a result of the bond tender exercise”.
When adjusted for this “and other smaller items that impact the comparability of results”, Apache said its third quarter earnings were $244 million. Net cash provided by operating activities in the quarter was $1 billion. Adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (adjusted EBITDAX) was $1.4 billion.
“Apache continued our strong performance in the third quarter of 2018,” John J. Christmann IV, Apache's chief executive officer and president, said in a company statement.
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