Chevron: Follow-Up Appraisal Well for Jack Later in 2008

HOUSTON, May 02, 2008 (Dow Jones Commodities News)

Chevron Corp. (CVX) said Friday it plans to drill another appraisal well at its Jack and St. Malo prospects in the deepwaters of Gulf of Mexico latter in 2008.

"One follow-up well for Jack and St. Malo is underway right now...and another a little bit later in the year," said Steve Crowe, Chevron's vice president and chief financial officer, who was addressing analysts during a conference call. "A decision will be made following those evaluations whether or not Jack and St. Malo will be kept as separate projects or conceivably combined."

Chevron, the second-largest U.S. oil company by market value, completed a successful well test last year in Jack, a 2004 discovery, making it the deepest successful well in the Gulf of Mexico. The oil giant said in July it would drill a second well early this year.

The company also said production at its Blind Faith project in the deepwaters of the Gulf of Mexico will be delayed until the second half of the year due to a problem with its mooring lines. The project, with an expected yield production capacity of 70,000 barrels a day, was expected to come on line in the second quarter.

Chevron now has about 30 projects of $1 billion or more under development. In 2008, Chevron expects major new production to come on line from the Gulf of Mexico, Nigeria and Kazakhstan.

Chevron reported Friday a 9.6% rise in first-quarter net income compared with the same period a year ago. The company's shares were recently up 0.45% at $95.37.

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