Today, APA Corporation announced an oil discovery on Alaska’s North Slope from the Sockeye-2 exploration well in the Lagniappe area east of Prudhoe Bay. Santos holds a 25 per cent stake in the joint venture with APA Corporation (50 per cent) and Lagniappe Alaska, LLC (25 per cent). The exploration well cost is carried by APA as part of a 2023 farm-in agreement.

The Sockeye-2 well was drilled to a depth of approximately 10,500 feet, successfully reaching a high-quality reservoir containing around 25 feet of net oil pay within a single, blocky, Paleocene-aged sand formation with an average porosity of 20 per cent.  Additionally, potential pay zones were identified in the shallower Staines Tongue formation. 

"The Sockeye-2 test is the second successful exploratory well drilled by the partnership on a 325,411-acre position on state lands. The first well, King Street-1, was a new field discovery with oil in two separate Brookian Zones. The Sockeye-2 well further demonstrates the potential of the play, presenting an exciting opportunity in an active area of the North Slope with significant existing infrastructure," said Bill Armstrong, CEO of Armstrong Oil & Gas.

"We are very encouraged by the results at the Sockeye-2 well, which further proves our geologic and geophysical models and confirms a working hydrocarbon system. We look forward to the results of the flow test and sharing more information about the broader opportunity in Alaska," added John J. Christmann, APA Corporation CEO.

Santos Executive Vice President and President Alaska, Bruce Dingeman, expressed excitement about the discovery at Lagniappe and confirmed strong progress with Pikka. 

“We are pleased with the Sockeye-2 well exploration discovery and its confirmation of resource potential over our Lagniappe leasehold. In addition, we are now 80% complete at our Pikka phase 1 project.  Pipeline installation is progressing well and set to be completed in two winter seasons, putting us in a good position to pursue acceleration to first oil around the end of 2025. This will be dependent on logistics and weather allowing for the mobilisation of key production models by barge up the Hay River. Until we have more certainty, guidance remains unchanged with first oil in mid-2026,” Mr Dingeman said.

Pikka phase 1 is expected to deliver 80,000 barrels of oil per day (bopd) at full production.

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