Chevron Discovers Oil in United States Gulf of Mexico

Chevron has discovered oil in the Gulf of Mexico in deep-water according to a company announcement.

The oil was discovered within Chevron’s Moccasin prospect at the Keathley Canyon Block 736 Well No. 1. which encountered more than 380 feet of net pay in the Lower Tertiary Wilcox Sands.

The well is located 216 miles off Louisiana’s shore and is down 6,759 feet in the Gulf.  It also extends 31,545 feet into the crust of the Earth.

Chevron said in a company statement, “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, Chevron Corporation. “Moccasin is an important addition to our queue of high-quality opportunities around the globe.”

Chevron has been drilling at the Moccasin well since March, 2010, however, drilling activity was halted due to the United States government imposing a moratorium on deepwater drilling in the Gulf of Mexico.  In March, 2011, drilling was resumed post-approval by the United States Bureau of Ocean Energy Management, Regulation and Enforcement revising Chevron’s permit.

Chevron says that the results at the Moccasin well is still being analyzed and it is unclear at this time the full extent of the oil reserve.  The company also said that they have a 43.75% interest in the prospect and that they are the operators of the well.  Other companies having an interest is BP plc with a 43.75% interest and Samson Offshore Company which holds 12.5% interest.