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Yellowtail-1 well is fifth discovery in Turbot area
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Turbot area expected to become major development hub
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Adds to previously announced estimated gross discovered recoverable
resource of more than 5.5 billion barrels of oil equivalent
Hess Corporation (NYSE: HES) today announced a new discovery offshore
Guyana at the Yellowtail-1 well, marking the 13th discovery on the
Stabroek Block. The discovery adds to the previously announced estimated
gross discovered recoverable resource of more than 5.5 billion barrels
of oil equivalent on the Stabroek Block.
“Yellowtail marks the 13th significant discovery on the
Stabroek Block,” said CEO John Hess. “As the fifth discovery in the
greater Turbot area, it underpins another major development hub.”
Yellowtail-1 encountered approximately 292 feet (89 meters) of
high-quality oil-bearing sandstone reservoir and was drilled to a depth
of 18,445 feet (5,622 meters) in 6,046 feet (1,843 meters) of water. The
well is located approximately 6 miles (10 kilometers) northwest of the
Tilapia discovery. The Noble Tom Madden began drilling the Yellowtail
well on March 27. It will next drill the Hammerhead-2 well.
Exploration and development activities continue at other locations on
the Stabroek Block. The Stena Carron is currently completing a well test
at the Longtail-1 discovery and upon completion will next drill the
Hammerhead-3 well. Later in 2019, the Stena Carron will drill a second
well at the Ranger discovery. The Noble Bob Douglas drillship is
currently completing development drilling operations for the Liza Phase
1 development. The operator is also evaluating plans to add another
exploration drillship, bringing the number of drillships offshore Guyana
to four.
Previous discoveries on the Stabroek Block established the potential for
at least five floating production, storage and offloading (FPSO) vessels
producing more than 750,000 barrels of oil per day by 2025. Startup of
the Liza Phase 1 development is on track to begin by the first quarter
of 2020 and will produce up to 120,000 gross barrels of oil per day
utilizing the Liza Destiny FPSO, which is expected to arrive in country
in the third quarter.
Liza Phase 2 is expected to startup by mid-2022. A final investment
decision is expected soon subject to government and regulatory
approvals. Upon approval, the project will use the Liza Unity FPSO to
produce up to 220,000 gross barrels of oil per day. Sanctioning of a
third development, Payara, is also expected in 2019, with startup
projected in 2023.
The Stabroek Block is 6.6 million acres (26,800 square kilometers).
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is
operator and holds 45 percent interest in the Stabroek Block. Hess
Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum
Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25
percent interest.
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.
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