ExxonMobile Discovers Two New Oil Deposits At Offshore Guyana

ExxonMobil (NYSE: XOM) has announced that it has discovered two oil deposits at Fangtooth-1 and Lau Lau-1 in the Stabroek block offshore Guyana.

ExxonMobil stated that the Fangtooth-1 well was drilled in 6,030 feet of water and encountered approximately 164 feet of high-quality oil-bearing sandstone reservoirs. While Lau Lau-1 was drilled in 4,793 feet of water, approximately 315 feet of high-quality hydrocarbon-bearing sandstone reservoirs,

The company explained that these lucky strikes will add to the earlier announced recoverable resource estimate for the block of 10 billion oil-equivalent barrels.

The senior vice president of exploration and new ventures at ExxonMobil, Mike Cousins in a statement said “Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, ExxonMobil and our co-venturers in the Stabroek block.

“The Fangtooth discovery is a successful result of our strategy to test deeper prospectivity and the Lau Lau discovery adds to the large inventory of development opportunities in the southeast part of the Stabroek block,” he added in the statement.

“Both discoveries increase our understanding of the resource, our continued confidence in the block’s exploration potential, and our view that the many discoveries to date could result in up to 10 development projects,” Cousins concluded.

Hess CEO, John Hess, said, also commenting on the discovery said “we are excited to announce two more significant discoveries on the Stabroek Block.

“Both discoveries further underpin our queue of future low-cost development opportunities.

"We continue to see the potential for at least six FPSOs on the Stabroek Block in 2027 with a production capacity of more than one million gross barrels of oil per day, and up to 10 FPSOs to develop the discovered resources on the block,” Hess added.

ExxonMobil in a company statement revealed discovery at the Cataback-1 well which brought the total significant discoveries to more than 20 within the Stabroek Block that it had increased its estimate of the discovered recoverable resource for the Stabroek Block offshore Guyana to approximately 10 billion oil-equivalent barrels back in October last year.