BP Announces Significant Discovery in Gulf of Mexico

LONDON--Integrated oil and gas company BP PLC (BP.LN), said Wednesday it has made a significant oil discovery at its Gila prospect, which it co-owns with ConocoPhillips (COP), in the deepwater US Gulf of Mexico.

Appraisal drilling, including completion of drilling through the Paleocene section, will be required to determine the size and potential commerciality of the discovery, BP said.

The Gila discovery was made by an exploration well on Keathley Canyon Block 93, about 300 miles southwest of New Orleans, in 4,900 feet of water. BP owns a majority interest in the Gila discovery.

BP said the well, which penetrated multiple Paleogene-aged reservoir sands, was drilled to a total depth of 29,221 feet.

Mike Daly, BP's global head of exploration, said: "Gila continues our successful drill out of the prolific Paleogene play system in the deepwater Gulf of Mexico."

"Subject to successful appraisal, Gila, Tiber and Kaskida together offer the potential for significant future oil developments in the Keathley Canyon area," he added.

BP shares closed Tuesday at 465 pence, valuing the company at GBP86.72 billion ($141.3 billion).

Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

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