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article imageChevron and BP hit oil with new deepwater well in Gulf of Mexico

By Lynn Herrmann     Sep 15, 2011 in Business
San Ramon - Situated in 6,759 feet of water and drilled to a depth of 31,545 feet, Chevron and BP have announced a new oil discovery in the “prolific” Lower Tertiary Trend, located in the Gulf of Mexico deepwaters 216 miles off the Louisiana coast.
The well, called the Keathley Canyon Block 736 Well No. 1, at the Moccasin prospect, encountered more than 380 feet of net pay, located in the Lower Tertiary Wilcox Sands. “The Moccasin discovery underscores the importance of the deepwater Gulf of Mexico as a source of domestic energy for the United States and as a focus area for Chevron's worldwide exploration portfolio,” said George Kirkland, vice chairman of Chevron Corporation, in a company statement last week. “Moccasin is an important addition to our queue of high-quality opportunities around the globe.”
Drilling of the well began in March 2010, but was suspended in June 2010 after the US government’s moratorium on Gulf deepwater drilling, the result of BP’s calamitous Deepwater Horizon incident which killed 11 workers and led to the greatest environmental disaster in US history.. Chevron resumed drilling in March 2011 after the Obama administration revised deepwater drilling permitting process.
California-based Chevron notes well results are still under evaluation and additional work is needed to determine the extent of the resource. Chevron, operator of the Moccasin discovery well, shares ownership of the well with BP, each claiming a 43.75 percent working interest in the prospect. Samson Offshore Company has the remaining 12.5 percent.
The Moccasin well could be developed with a neighboring field, a move which could accelerate its production. “Assuming that we can confirm we have commercial quantities in the Moccasin well, it will likely be co-developed with the Buckskin, which will put it on a little faster track than if it was a stand-alone asset,” said Gary Luquette, Chevron president for North America, the Wall Street Journal reports.
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