Apache Finds Oil in South America Offshore Block -- Update

By Micah Maidenberg 

Apache Corp. and Total SA said they found oil off the coast of Suriname, characterizing the find as a significant one in a region energy investors have been watching closely.

News of the successful find sent shares of Houston-based Apache up 21% in Tuesday morning trading. Total shares were down slightly.

Last month, Apache released an update about its exploration efforts at the well that contained relatively little information about search results. That update sent shares in the Houston-based company sharply lower.

"Data indicates the potential for prolific oil wells," Apache Chief Executive John Christmann said in a statement Tuesday about the company's discovery in the waters near the South American nation.

The Suriname field Apache is developing is located to the east of offshore prospects and fields in Guyana, including a major field Exxon Mobil Corp. is developing. Hess Corp. and China's Cnooc Ltd. are partners in that project.

Apache also said last month it struck a deal with Total to explore and develop the field in Suriname where the companies now have found oil.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

January 07, 2020 10:47 ET (15:47 GMT)

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