Chevron and BP announced a new oil discovery at the Guadalupe prospect in the deepwater US Gulf of Mexico.
The discovery well, on Keathley Canyon Block 10, was drilled by operator Chevron on behalf of the Guadalupe co-owners. The well encountered significant oil pay in Paleogene age Wilcox Sands. The well is located approximately 180 miles off the Louisiana coast in 3,992 ft of water and was drilled to a depth of 30,173 ft.
“The discovery further demonstrates Chevron’s exploration capabilities,” George Kirkland, Vice Chairman and Executive Vice President of Upstream, Chevron Corporation, said. “Guadalupe builds on our already strong position in the deepwater US Gulf of Mexico, a core focus area where we expect significant production growth over the next two years.”
Chevron subsidiaries averaged a net daily production of 143,000 bbl of crude oil, 347 million cu ft of natural gas, and 15,000 bbl of natural gas liquids during 2013. The company expects additional deepwater production from the Tubular Bells and Jack/St. Malo projects by the end of the year.
Chevron began drilling the Guadalupe well in June 2014. More tests are being conducted on the discovery well and additional appraisal wells will be needed to determine the extent of the resource.
“BP is pleased to be a part of another discovery in the Paleogene trend, an area of increasing importance to the future of the Gulf of Mexico and to America’s energy security,” Richard Morrison, Regional President of BP’s Gulf of Mexico business, said. “This again highlights BP’s strength in exploration and our commitment to the deepwater US Gulf of Mexico where we are the leading energy investor and leaseholder, and a top oil and natural gas producer.”
Chevron U.S.A., with a 42.5% working interest in the prospect, is the operator of the Guadalupe discovery well. Guadalupe co-owners are BP (42.5 %) and Venari Resources (15 %).