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Longtail-1 well encounters approximately 256 feet of high-quality,
oil-bearing sandstone
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Discovery is in southeast portion of Stabroek Block, near Turbot
discovery
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Adding third drillship to accelerate exploration of high value
prospects
Hess Corporation (NYSE: HES) today announced an eighth oil discovery
offshore Guyana at the Longtail-1 exploration well, creating the
potential for additional resource development in the southeast area of
the Stabroek Block.
The well encountered approximately 256 feet (78 meters) of high-quality,
oil-bearing sandstone reservoir. The well was safely drilled to 18,057
feet (5,504 meters) depth in 6,365 feet (1,940 meters) of water. The
Stena Carron drillship began drilling on May 25, 2018.
The Longtail-1 well is located approximately 5 miles west of the
Turbot-1 well and follows previous world-class discoveries on the
Stabroek Block at Liza, Payara, Liza Deep, Snoek, Turbot, Ranger and
Pacora.
Longtail drilling results are under evaluation; however, the combined
gross recoverable resources of Turbot and Longtail are estimated to
exceed 500 million barrels of oil equivalent.
CEO John Hess said: “We are very pleased with this eighth significant
oil discovery, which reaffirms the remarkable exploration potential of
the Stabroek Block.”
Following completion of the Longtail-1 well, the Stena Carron drillship
will move to drill the Hammerhead-1 well located approximately 9 miles
southwest of the Liza discovery. The operator plans to add a third
drillship that will operate in parallel to the Stena Carron to explore
the Block’s numerous high value prospects.
Liza Development Advances
The Liza Phase 1 development offshore Guyana, sanctioned last June,
continues to rapidly progress. Development drilling began in May, laying
the foundation for production start-up in early 2020. Liza Phase 1 will
consist of 17 wells connected to a floating production, storage and
offloading (FPSO) vessel designed to produce up to 120,000 barrels of
oil per day. Construction of the FPSO and subsea equipment is under way.
The second phase of the Liza development will utilize a second FPSO with
gross production capacity of approximately 220,000 barrels of oil per
day, with start-up expected by mid 2022. A third phase of development is
planned to closely follow Liza Phase 2 and is expected to bring gross
production to more than 500,000 barrels of oil per day by late 2023.
Co-venture partners ExxonMobil, Hess and Nexen are focused on enabling
Guyanese workforce and supplier development and working with government
to support the growth and success of its economy, both in the energy and
non-energy sectors. In 2017, ExxonMobil, Hess and Nexen together spent
$24 million with more than 300 local suppliers and opened the Centre for
Local Business Development in Georgetown, Guyana to promote the
establishment and growth of local businesses.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso
Exploration and Production Guyana Limited is operator and holds a 45
percent interest in the Stabroek Block. Hess Guyana Exploration Ltd.
holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited
holds a 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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