Hess Announces New Oil Discovery Offshore Guyana, Further Increasing Resource Potential
13 January 2017 - 12:36AM
Business Wire
Hess Corporation (NYSE:HES) today announced positive results
from the Payara-1 well offshore Guyana, which is the second oil
discovery on the Stabroek Block following the world-class Liza oil
discovery in 2015.
Payara-1 Discovery
The Payara-1 well, located approximately 10 miles (16
kilometers) northwest of the Liza discovery, was drilled by Esso
Exploration and Production Guyana Limited, and encountered more
than 95 feet (29 meters) of high-quality, oil-bearing sandstone
reservoirs. The well was safely drilled to a depth of 18,080 feet
(5,512 meters) in 6,660 feet (2,030 meters) of water.
Drilling on Payara began on Nov. 12 with initial total depth
reached on Dec. 2. Two sidetracks were subsequently drilled, and a
production test is planned to further evaluate the discovery.
Appraisal drilling is planned beginning later this year to
determine the full resource potential of the Payara discovery.
Deeper High-Quality Reserves Identified Below Liza
Field
In addition to the Payara discovery, the Liza-3 appraisal well,
which was completed in November 2016, identified an additional high
quality, deeper reservoir directly below the Liza Field, which is
estimated to contain between 100-150 million barrels of oil
equivalent. This additional resource is expected to be developed in
conjunction with the Liza discovery.
“The Payara-1 results further demonstrate the prospectivity of
the Stabroek block,” John Hess, CEO of Hess Corporation, said. “We
are excited about Payara as well as the deeper reservoir identified
below the Liza Field. While further appraisal is required, we
believe that the resources recently discovered are significant and
will be accretive to the more than 1 billion barrels of oil
equivalent already confirmed at the Liza discovery.”
Further Evaluation of the Stabroek Block
The Stabroek Block is 6.6 million acres (26,800 square
kilometers). Esso Exploration and Production Guyana Limited is
operator and holds 45 percent interest in the Stabroek Block. Hess
Guyana Exploration Limited holds 30 percent interest and CNOOC
Nexen Petroleum Guyana Limited holds 25 percent interest.
The co-venture partners plan to appraise the Liza and Payara
discoveries and continue to evaluate the resource potential on the
broader Stabroek block with additional exploration drilling and
seismic analysis planned for 2017. Upon completion of operations on
the Payara-1 well, the Stena Carron drillship will move to the
Snoek exploration prospect, which is located approximately 6 miles
(10 kilometers) south of the Liza-1 discovery well.
Hess Corporation is a leading global independent energy company
engaged in the exploration and production of crude oil and natural
gas. More information on Hess Corporation is available at
http://www.hess.com.
Cautionary Statements
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These projections and statements reflect the company’s current
views with respect to future events and financial performance. No
assurances can be given, however, that these events will occur or
that these projections will be achieved, and actual results could
differ materially from those projected as a result of certain risk
factors. A discussion of these risk factors is included in the
company’s periodic reports filed with the Securities and Exchange
Commission.
We use certain terms in this release relating to resources other
than proved reserves, such as unproved reserves or resources.
Investors are urged to consider closely the disclosure relating to
proved reserves in Hess’ Form 10-K, File No. 1-1204, available from
Hess Corporation, 1185 Avenue of the Americas, New York, New York
10036 c/o Corporate Secretary and on our website at www.hess.com
You can also obtain this form from the SEC on the EDGAR system.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170112005571/en/
Hess CorporationInvestors:Jay Wilson,
212-536-8940jrwilson@hess.comorMedia:Lorrie Hecker,
212-536-8250lhecker@hess.com
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