US oil firm Apache is on schedule to deliver first oil from its Callater project in the North Sea later this year.
The Houston-headquartered firm said the tie-back at Callater progressed during the first quarter of 2017 with drilling under way on the first production well.
Production is expected to start in the third quarter of 2017.
For the first three months of the year, the firm’s production in the North Sea averaged 58,000 barrels of oil equivalent (boe) per day.
Apache operated two platform rigs during the quarter, one on the Forties field and another on Beryl.
Apache chief executive John Christmann said the firm was maintaining a “razor-sharp” focus on costs and well optimisation on all its assets.
He said: “During the first quarter, we delivered strong results and made notable progress toward our 2017 strategic objectives.
“Earlier this year, we outlined a plan to deliver returns-focused growth by budgeting conservatively, investing to sustain free cash flow internationally, and increasing investment in the Midland and Delaware basins.
“We are maintaining a razor-sharp focus on costs and well optimization and actively managing our portfolio.”
He added: “We have responded well to the challenges facing the industry over the last two years, successfully realigning our cost structure to ensure profitability at $50 oil, streamlining our asset base and significantly improving our capital efficiency, well performance and organic growth prospects.
“We are now well positioned to deliver returns-focused growth, with our first quarter results indicating solid progress toward our objectives.”
Total first-quarter production reached 481,000 boe per day.
Apache recorded pre-tax profits of $538million in the first quarter of 2017, compared to a deficit of $382million a year earlier.
Revenues jumped 73% to $1.88billion.
Oil and gas capital investment was $646million during the quarter, with 68% focused on the Permian Basin.
During the quarter, the company closed two noncore Permian acreage transactions for cash proceeds of $440 million.
In addition, the company closed $26million in further noncore divestments.
At the end of the first quarter, Apache’s net debt position was just under $7billion, a decrease of $200million from the previous
quarter.
During the first quarter, Apache operated an average of 30 rigs and drilled and completed 46 gross-operated wells worldwide.
