ExxonMobil announces major oil and gas discovery

Exxon Mobil Corp. announced major discoveries in both oil and gas in the deepwater Gulf of Mexico. Using the Maersk Developer semi-submersible drilling rig, the company drilled the first deepwater exploration well after the moratorium was lifted.  The discoveries could equal a recoverable resource of more than 700 million barrels of oil.  One well located 250 miles off the coast of New Orleans indicates more than 475 feet of net oil pay.  Another discovery is located at Hadrian North with 550 feet of net oil pay.  A natural gas pay of 200 feet was located at the company’s Hadrian South prospect in Keathley Canyon. Steve Greenlee, president of ExxonMobil Exploration Company, said, “We estimate a recoverable resource of more than 700 million barrels of oil equivalent combined in our Keathley Canyon blocks. 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.” (June 8, 2011)