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Exxon (XOM) Finds New Oil at Uaru-2 Well in Offshore Guyana

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ExxonMobil Corporation (XOM - Free Report) made a significant oil discovery at the Uaru-2 well in the Stabroek Block off the Guyana coast. Notably, the company announced Uaru-2 as the 19th discovery in the Stabroek block.

However, there was no mention about how much the recent discovery would add to the previously-discovered gross recoverable resource estimate of more than 9 billion barrels of oil equivalent in the block. The discovery identified 120 feet of high-quality oil and gas reservoirs, which included newly identified intervals below the original Uaru-1 discovery.

ExxonMobil’s wholly-owned subsidiary Esso Exploration and Production Guyana Limited (“EEPGL”) is the operator of the Stabroek Block, with a 45% ownership interest. The remaining stakes are owned by subsidiaries of Hess Corporation (HES - Free Report) and CNOOC Limited (CEO - Free Report) , holding 30% and 25% interest, respectively.

The Uaru-2 well, which lies 6.8 miles south of the Uaru-1 well, was drilled 5,659 feet below the water surface. In January 2020, ExxonMobil made a significant oil discovery at the Uaru-1 well in the Stabroek Block. Notably, the well was drilled in 6,342 feet of water and identified about 94 feet of high-quality oil-bearing sandstone reservoirs.

In recent years, Exxon and partners made multiple quality discoveries in the Stabroek Block, making Guyana the newest crude producing nation in December 2019. Importantly, the latest invention increased the extensive list of discoveries in the newest crude producing nation in Latin America and the company’s potential to optimally sequence development opportunities in the block.

Exxon expects at least six projects online by 2027 and sees the opportunity of up to 10 floating production storage and offloading vessels to develop its current recoverable resource balance.

Company Profile & Price Performance

Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.

Shares of the company have outperformed the industry in the past six months. The stock has gained 78.1% compared with the industry’s 58.9% growth.

 

 

Zacks Rank & Other Stocks to Consider

The company currently sports a Zack Rank #1 (Strong Buy).

Another top-ranked player in the energy space is Eni SPA (E - Free Report) , currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eni’s earnings for 2021 are expected to increase 20.4% year over year.

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