Hess Sees ‘Running Room’ In Gulf Of Mexico

Prolific production in the Permian Basin and large, play-opening discoveries offshore Guyana may regularly grab headlines, but companies like Hess Corp. (NYSE: HES) still see value in the U.S. Gulf of Mexico (GoM).

The New York-headquartered company said Dec. 12 it plans to drill an exploration well in the GoM next year at the Esox prospect, which is located near its Tubular Bells hub. The well will be the first exploration well in the GoM drilled by Hess in some time, Barbara Lowery-Yilmaz, senior vice president of exploration, said during an investor presentation.

If successful, the prospect could become another high-return tieback for the company, which brought its Stampede development online earlier this year. Lowery-Yilmaz described Esox, which sits six miles updip from the Royal Dutch Shell Plc (NYSE: RDS.A)-operated Kaikias Field, as a Miocene amplitude-supported subsalt prospect located in a shallower stratigraphic horizon than the producing zones of the Tubular Bells Field.