Exxon Mobil announces three oil and gas discoveries in deepwater Gulf of Mexico
Texas-based Exxon Mobil (NYSE:XOM) said Wednesday it has made three discoveries in the deepwater Gulf of Mexico, after the drilling of its first exploration well following the moratorium imposed in the wake of the BP oil spill last year.
Two major oil discoveries and one gas find were located, the company said.
The KC919-3 wildcat well confirmed the presence of a second oil accumulation in Keathley Canyon block 919, as the well encountered more than 475 feet of net oil pay and a minor amount of gas in predominantly high-quality sandstone reservoirs.
The well, which is continuing to drill deeper, is located 250 miles southwest of New Orleans in approximately 7,000 feet of water.
Drilling in early 2010 encountered oil and natural gas at Hadrian North in KC919, and extending into KC918, with over 550 feet of net oil pay and a minor amount of gas.
In 2009, the company found 200 feet of natural gas pay in sandstone reservoirs at its Hadrian South prospect, in Keathley Canyon block 964.
"We estimate a recoverable resource of more than 700 million barrels of oil equivalent combined in our Keathley Canyon blocks," said president Steve Greenlee.
"This is one of the largest discoveries in the Gulf of Mexico in the last decade. More than 85 percent of the resource is oil with additional upside potential.
"We plan to work with our joint venture partners and other lessees in the area to determine the best way to safely develop these resources as rapidly as possible."
ExxonMobil is the operator of Keathley Canyon blocks 918, 919, 963 and 964, with a 50% working interest.
Eni Petroleum and Petrobras America each hold a 25% working interest in KC919, KC963 and KC964, with Petrobras having a 50% working interest in KC918.
Over the past decade, ExxonMobil has drilled 36 deepwater wells in the Gulf of Mexico, in water ranging from 4,000 feet to 8,700 feet.
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