APA Corporation APA, along with its partners, Lagniappe Alaska, LLC and Oil Search (Alaska), LLC (a subsidiary of Santos Limited), recently announced a major milestone in Alaska’s North Slope. The consortium successfully completed flow testing at the Sockeye-2 exploratory well, achieving impressive results that could significantly enhance future developments in the region.
Strong Performance at Sockeye-2 Well
The Sockeye-2 well was drilled to approximately 10,500 feet and encountered a Paleocene-aged clastic reservoir with outstanding features, like an average porosity of 20%. Completed in a single 25-foot interval at around 9,200 feet TVD, the well flowed without stimulation or artificial lift, averaging 2,700 barrels of oil per day over a 12-day production test. These results confirm a reservoir quality significantly superior to comparable discoveries further west, setting a new benchmark for shallow-marine reservoirs on the eastern North Slope.
An Insight Into the North Slope Project
The North Slope project was announced under a joint venture between APA Corp, which holds a 50% working interest; Lagniappe Alaska, LLC, which owns a 25% operating interest and Santos, which holds the remaining 25% interest.
The joint venture commenced an initial exploration campaign in its North Slope position in 2023 but couldn't reach its objectives within the seasonal time window for drilling. It tried again in 2024 with plans for three exploratory wells, one of which was King Street-1. King Street-1 was a new field discovery with oil in two separate Brookian zones.
The Sockeye-2 is the second successful exploratory well drilled by the joint venture on 325,411-acre state land. It demonstrates the potential of the region and provides the partnership with an exciting opportunity in an active area of the North Slope with significant existing infrastructure.
A New Chapter for Alaska’s Energy Future
The partner companies highlight the importance of the positive results from the Sockeye-2 well for the future of Alaska. They state that the success of the Sockeye-2 will significantly extend the prolific Brookian topset play that was originally established with the Pikka discovery in 2013. They further emphasized that the Sockeye-2 results will validate their geological models and reduce risk for further prospects in the block. This discovery, along with the planned appraisal drilling in the future, could mark a pivotal moment for Alaska’s energy landscape, offering promising opportunities for exploration and development.
APA’s Zacks Rank and Key Picks
Houston, TX-based APA Corp is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Currently, APA has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some top-ranked stocks like Expand Energy Corporation EXE, CrossAmerica Partners LP CAPL and Diversified Energy Company PLC DEC. While Expand Energy and CrossAmerica currently sport a Zacks Rank #1 (Strong Buy) each, Diversified Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE’s 2025 earnings indicates 475.89% year-over-year growth.
CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and owns and leases real estate used in the retail distribution of motor fuels. CAPL’s expected EPS (earnings per share) growth rate for the next quarter is pegged at 44.74%, which compares favorably with the industry's growth rate of 17.80%.
Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2025 earnings indicates 70.77% year-over-year growth.
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APA Corporation (APA): Free Stock Analysis Report Diversified Energy Company PLC (DEC): Free Stock Analysis Report CrossAmerica Partners LP (CAPL): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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