Exxon Says 2nd Well Confirms Major Offshore Guyana Discovery

   By Tess Stynes 
 

Exxon Mobil Corp. said a second exploration well roughly 120 miles off the coast of Guyana confirms a "world class" discovery of high-quality oil in the Stabroek block.

The Irving, Texas, oil giant initially unveiled the discovery of massive offshore oil and gas deposits off the coast of the small South American nation in May 2015.

On Thursday, Exxon estimated potential recoverable resources of between 800 million oil-equivalent barrels and 1.4 billion oil-equivalent barrels.

Exxon said the Liza 2 well, located about two miles from the Liza 1 well, was drilled to 17,963 feet in 5,551 feet of water. The Liza 2 well encountered encountered more than 190 feet (58 meters) of oil-bearing sandstone reservoirs.

Exxon Mobil affiliate Esso Exploration and Production Guyana Ltd. has a 45% interest the Stabroek block and is the operator on the project. Hess Corp. has a 30% interest in the project and CNOOC Ltd. has a 25% interest.

Hess shares rose 3% to $59.50, Exxon shares eased 21 cents to $92.25, and Cnooc's American depositary shares were inactive in recent premarket trading.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

June 30, 2016 09:46 ET (13:46 GMT)

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