Nailed It: Exxon Mobil, Hess Say Hammerhead Hits Oil Offshore Guyana

The winning streak continues offshore Guyana for Exxon Mobil Corp. (NYSE: XOM) and partners. A ninth discovery in the Exxon-led exploration effort has ushered in a new play concept for potential development.

Hammerhead-1, which is located about 21 km (13 miles) southwest of the Liza-1 well, hit about 60 m (197 ft) of “high-quality, oil-bearing sandstone reservoir” after being drilled to a depth of 4,225 m (13,862 ft) in a water depth of 1,150 m (3,373 ft), Exxon Mobil said in a news release Aug. 30.

“The Hammerhead-1 discovery reinforces the potential of the Guyana Basin, where Exxon Mobil is already maximizing value for all stakeholders through rapid phased developments and accelerated exploration plans,” Steve Greenlee, president of ExxonMobil Exploration Co., said in the release. “Development options for Hammerhead will take into account ongoing evaluation of reservoir data, including a well test.”

The well was drilled by the Stena Carron drillship on the Stabroek Block, where Exxon Mobil affiliate Esso Exploration and Production Guyana Ltd. has made four other discoveries in the past year.