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ExxonMobil (XOM) Makes Non-Commercial Oil Discovery at Tanager-1

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Exxon Mobil Corporation (XOM - Free Report) recently made another discovery in offshore Guyana but the results are uneconomic in nature, per reports. The company’s oil discovery at the Tanager-1 well is viewed as a non-commercial discovery on a standalone basis.

The Tanager-1 well is located near the Kaieteur Block, offshore Guyana. Southwest of the Kaieteur Block lies the famous Stabroek block, wherein ExxonMobil has made 18 promising world-class oil discoveries. Notably, it estimates gross resources of much more than 9 billion barrels of oil equivalent in the Stabroek Block, wherein ExxonMobil has Hess Corporation (HES - Free Report) and China’s CNOOC Limited (CEO - Free Report) as partners.

In the Kaieteur Block, operator ExxonMobil has a 35% stake while Cataleya Energy and Ratio Guyana hold 25% interest each. The remaining 15% stake at the block is owned by Hess. Despite making a non-commercial discovery, ExxonMobil intends to keep evaluating the exploration potential at the block. The exploration well drilled at the site is touted to be the deepest one in the Guyana-Suriname Basin till date. Total depth achieved at the well was recorded at 7,633 meters.

ExxonMobil has found 16 meters net oil pay in high-quality sandstone reservoirs at the site from the Maastrichtian age. The preliminary test results indicated the presence of less-valuable heavier crude oil in the well compared with the Liza Phase 1 in the Stabroek Block. The Tanager-1 well is expected to be plugged and abandoned in the future.

Price Performance

ExxonMobil has lost 18% in the past six months compared with 3.4% fall of the industry it belongs to. 

Zacks Rank & Stock to Consider

Currently, ExxonMobil has a Zacks Rank #4 (Sell). A better-ranked player in the energy space is Antero Resources Corporation (AR - Free Report) , holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Resources’ bottom line for 2021 is expected to rise 30.5% year over year.

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