Chevron Corp. unveiled a natural-gas discovery in the Gorgon area off the coast of Western Australia, which the company said will support long-term plans for its Gorgon liquefied-natural gas project.
Shares were down 1.9% at $107.16 in premarket trading.
The second biggest oil company in the U.S. behind Exxon Mobil Corp., Chevron said an exploration well encountered approximately 97 feet of net gas pay. The well, about 40 miles northwest of Barrow Island, was drilled in 690 feet of water to a total depth of 16,581 feet.
The company said it is its 14th discovery in the region since 2009.
Chevron has been investing heavily in Asia-Pacific--including the construction of the Gorgon and Wheatstone projects to tap a projected surge in demand for cleaner-burning fuels.
Chevron Australia is the operator of the permit block and holds a 47.3% interest. Exxon Mobil Corp. and Royal Dutch Shell PLC's Shell Development Australia each have 25% interests.
Copyright (c) 2012 Dow Jones & Company, Inc.
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