Hess Corporation (HES - Free Report) reiterated the exploration potential of the Stabroek Block, following the announcement of the eighth oil discovery at the Longtail-1 well, offshore Guyana.
Located about five miles west of the Turbot-1 well, the Longtail-1encountered about 256 feet (78 meters) of superior, oil-bearing sandstone reservoir. The drilling of the well commenced on May 25, 2018, using the Stena Carron drillship to reach a total depth of 18,057 feet (5,504 meters) in 6,365 feet (1,940 meters) of water.
The previous outstanding discoveries on the Stabroek Block include Liza, Payara, Liza Deep, Snoek, Turbot, Ranger and Pacora. Currently, drilling results of Longtail are under appraisal. The combined gross recoverable resources of Turbot and Longtail are projected to surpass 500 million barrels of oil equivalent.
On completion of the Longtail-1 well, the Stena Carron drillship will move to operate in the Hammerhead-1 well located about 9 miles southwest of the Liza discovery. To accelerate exploration of high value prospects, the operator intends to add a third drillship that will commence drilling parallel to the Stena Carron. The discovery of oil at the Longtail-1 exploration well raises the potential for additional resource development in the southeast area of the Stabroek Block.
Stabroek Block is spread across acreage of 6.6 million (26,800 square kilometers). ExxonMobil Corporation (XOM - Free Report) affiliate, Esso Exploration, and Production Guyana Limited, the operator, holds 45% interest in the Stabroek Block. Hess holds 30% interest and CNOOC Limited (CEO - Free Report) holds 25% interest.
In the past three months, Hess’ shares have gained 23.6% compared with the industry’s 17.3% rise.
Zacks Rank & Key Picks
Hess currently carries a Zacks Rank #3 (Hold).
A better-ranked player in the same sector is Occidental Petroleum Corporation (OXY - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum is an international oil and gas exploration and production company. It pulled off an average positive earnings surprise of 30.2% in the last four quarters.
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