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Hess Makes 18th Oil Discovery in Guyana's Stabroek Block

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Hess Corporation (HES - Free Report) announced another offshore Guyana oil finding, marking the 18th discovery in the Stabroek block. This time, the discovery has been made at the Redtail-1 well and the company is expecting the discovery to increase its prior estimate of more than 8 billion barrels of oil equivalent for gross discovered recoverable resource.

The company added that the well was drilled in 1,878 meters of water, where it encountered almost 70 meters of high-quality oil-bearing sandstone. The Noble Don Taylor drillship was employed by Exxon Mobil Corporation (XOM - Free Report) for drilling the well. Notably, the Redtail-1 well’s location is at 1.5 miles northwest of the Yellowtail discovery.

Hess added that it encountered 21 meters of high-quality oil-bearing reservoirs at Yellowtail-2 well, which marked the 17th discovery in the Stabroek Block. Importantly, the leading upstream player believes that discoveries at Redtail-1 and Yellowtail-2 wells reflect remarkable exploration potential of the offshore block and has brightened the company’s oil production prospects.

ExxonMobil, with a 45% interest is the operator of the block, covering 6.6 million acres. Hess owns 30% interest in the block. The remaining 25% stake is being held by a wholly-owned subsidiary of CNOOC Limited (CEO - Free Report) .

Headquartered in New York, Hess currently carries a Zacks Rank #3 (Hold). Meanwhile, one better-ranked player in the energy space is EOG Resources, Inc. (EOG - Free Report) , holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EOG Resources’ 2020 bottom-line estimates have risen more than 200% over the past 30 days.

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