Chevron Unveils Deepwater Discovery in US Gulf of Mexico

Chevron Unveils Deepwater Discovery in US Gulf of Mexico

Chevron Corp. unveiled a deepwater oil discovery in the U.S. Gulf of Mexico about 190 miles off the coast of Louisiana.

The oil major said the well, located in 6,127 feet of water, revealed more than 400 feet of net pay. Results from the well, which drilled to a depth of 31,866 feet, are still being looked at and more work remains to determine the full extent of the discovery.

Gary Luquette, president of Chevron's North America Exploration and Production arm, said the discovery in the Coronado prospect adds to its string of exploration successes in the area, where the oil giant is moving a number of projects ahead.

Chevron is in the midst of completing a number of expensive, large-scale projects meant to raise its worldwide production, including a massive natural-gas project in Australia and new oil wells in the ultradeep waters in the U.S. Gulf of Mexico. The company aims to boost its daily oil and natural-gas production to 3.3 million barrels in 2017 from the nearly 2.7 million barrels it averaged in the fourth quarter of 2012.

Chevron has a 40% working interest in the Coronado prospect and is the operator of the discovery well. Other owners include ConocoPhillips, with a 35% interest, Anadarko Petroleum Corp., with a 15% interest and Venari Offshore LLC with 10% interest.

Chevron shares were up 30 cents at $121.48 in recent premarket trading. The stock is up 12% this year.


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