Apache Corp. is gearing up for exploration drilling offshore Suriname in search of a treasure trove of hydrocarbon riches.

The Houston-based company said May 2 it has contracted the Noble Sam Croft drillship, which is currently working in the Gulf of Mexico, for the job. Apache plans to spud its first well on Block 58 offshore Suriname around midyear, CEO John Christmann said on an earnings call May 2.

“We know we’ve got an active hydrocarbon system. We’ve got seven plays when you look at our block; it’s just an unbelievable block,” Christmann said, noting more than 50 large prospects have been identified on the block. Targets are located in both deep water and shallow water.

Suriname is among the most-watched exploration hotspots in the industry. But success stories have yet to be written.

Kosmos Energy Ltd., for example, struck out with the Anapai-1A exploration well, which was drilled to test a Cretaceous structural/stratigraphic trap in Block 45 offshore Suriname. The well failed to hit hydrocarbons, Kosmos said in late June 2018. About a month earlier the company experienced shallow borehole stability issues before reaching its target interval, which prompted it to re-spud the well.

Success has also remained elusive offshore Suriname for Apache, which failed to hit commercial volumes of hydrocarbons with the Kolibri-1 well in Block 53 in 2017. The company drilled the Popokai-1 well in 2015.

In its latest go, Apache said it secured a drillship under a one-year commitment for one well with an option for three additional wells. Noble Corp. said in its April fleet status report that the Noble Sam Croft drillship has an estimated contract start date in early July 2019 in Suriname.

Although Apache has decided where it will drill its first well, it has not publicly disclosed the location.

Block 58 borders the prolific Stabroek Block, offshore Guyana, where Exxon Mobil Corp. and partners have made 13 discoveries. The most recent, located at Yellowtail-1 well, was announced in mid-April, adding to the block’s estimated recoverable resources of about 5.5 billion barrels of oil equivalent—enough for at least five FPSOs.

Apache’s Suriname acreage is near Exxon Mobil’s Haimara discovery, which is in the southeast section of the Stabroek Block.

“That sure bodes well for us,” Christmann said.

The company is moving forward after having completed a substantial geological and geophysical evaluation of the block.

On Apache’s February earnings call, Christmann mentioned how Apache needs to send Exxon Mobil a Christmas card while speaking about the Haimara discovery. The Haimara-1 well encountered about 63 m (207 ft) of high-quality, gas-condensate bearing sandstone reservoir.

“What it proves is you got hydrocarbons in the system,” he said in February. “Clearly, in a conventional setting, you’re going to expect to see the condensates and the lighter hydrocarbons in the upper sections.”

“A lot of our targets will be deeper where we would anticipate they will be oily as is the case over on the Stabroek Block. It’s very, very encouraging,” he said.

Apache holds 100% interest in Block 58, which spans about 1.44 million acres, but the company has received interest from others wanting to become partners. Christmann said the company is currently evaluating numerous proposals from potential partners.

The Guyana-Suriname Basin has an estimated resource potential of more than 13 billion barrels of oil, according to the U.S. Geological Survey, and is considered one of the world’s top unexplored basins. The mainly offshore basin partially lies onshore.

Velda Addison can be reached at vaddison@hartenergy.com.

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