The discovery of three new wells holding trillions of cubic feet of gas pushed Apache to a new 52-week high. But that good news isn’t bankable just yet, the CEO says.
The oil and gas company’s new British Columbia wells “have a big resource potential,” Chief Executive Steven Farris told Cramer, “but it’s not without its challenges.”
Apparently, the gas is hard to reach, and Apache is only in the earliest stages of developing the wells.
There’s another catch: The effort to extract the gas makes sense at current market prices, but if those prices dropped 20% to 30%, the new discovery would be “possibly a marginal play,” Farris said.
Even though the news may not be bankable yet, Cramer said that Farris is – and so is Apache: “This remains the best single natural gas play in the world.”
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