Oil Firms: Tests Indicate Oil Discovery

OSLO, Norway – Tests of a deep and challenging offshore well in the Gulf of Mexico indicate a significant oil discovery, the partners in the field announced Tuesday.

The Jack 2 well was drilled by U.S. oil company Chevron Corp., with partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma.

“Test results are very encouraging and may indicate a significant discovery. The full magnitude of the field’s potential is still being defined,” Statoil said in a statement.

During the test, the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day, Statoil said.

The well was drilled in the Walker Ridge area of the Gulf, about 270 miles southwest of New Orleans and 175 miles off the coast, the company said. It followed up a discovery made by Chevron in 2004.

“This area is one of the new and promising deep water areas in the Gulf of Mexico,” said Oivind Reinertsen, senior vice president of Statoil’s Gulf of Mexico assets in Houston.

“The Jack 2 well test data are encouraging and may form the basis of future development projects in Walker Ridge,” he said.

In a separate statement, San Ramon, Calif.-based Chevron said the well set a variety of records, including the deepest well successfully tested in the Gulf of Mexico. Chevron said it was drilled to a total depth of 28,175 feet in waters that are 7,000 feet deep.

Chevron has a 50 percent stake in the field, while Statoil and Devon own 25 percent each.

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On the Net:

http://www.chevron.com

http://www.statoil.com

http://www.devonenergy.com