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Chevron hits oil in U.S. Gulf near Anadarko discovery

The ultra-deepwater drillship Discoverer Inspiration in the Gulf of Mexico. Chevron said Monday it struck oil at a deepwater well in the Gulf just 19 kilometres (12 nautical miles) from another discovery announced last week by Anadarko and ConocoPhillips.

Melissa Phillip/The Associated Press

Chevron Corp. said it struck oil at a deepwater well in the U.S. Gulf of Mexico just 19 kilometres (12 nautical miles) from another discovery announced last week by partners Anadarko Petroleum Corp. and ConocoPhillips.

Chevron said on Monday the Walker Ridge Block 98 well in the Coronado prospect encountered more than 130 metres of net pay – or the thickness of an oil reservoir that can produce hydrocarbons.

Chevron holds a 40-per-cent working interest in the prospect and is the operator of the Coronado discovery well. The well is located about 190 nautical miles off the Louisiana coast.

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Other owners of Coronado are ConocoPhillips with 35 per cent, a unit of Anadarko with 15 per cent and Venari Offshore LLC with a 10-per-cent stake.

Last Tuesday, Anadarko announced its discovery of a large amount of oil at the Shenandoah-2 well nearby. Anadarko and Conoco each hold 30 per cent of that well, while Cobalt International Energy LP has 20 per cent and Marathon Oil Corp. and privately held Venari both hold 10 per cent.

"Between the Coronado discovery, the potentially giant Shenandoah discovery, and our recent high bids on remaining open blocks in the Shenandoah/Coronado mini-basin, Venari is firmly positioned for significant growth in a future production hub in the Gulf," Venari chief executive officer Brian Reinsborough said.

While Conoco and Chevron shares were trading lower in Monday morning trading, Anadarko shares were 1-per-cent higher.

Wells Fargo analyst David Tameron noted that Anadarko had a 15-per-cent interest in the Yucatan prospect, also in the Shenandoah mini-basin.

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