Chevron Strikes in Deepwater U.S. Gulf of Mexico

The Pacific Santa Ana commenced its 5 year contract with a Chevron subsidiary on March 21, 2012, and began operations in the U.S. Gulf of Mexico on May 4, 2012. The drillship can drill to a depth of 40,000 feet. Image: Pacific Drilling

Chevron Corporation (NYSE: CVX) on Tuesday announced that it has struck oil at the Coronado prospect off the coast of Louisiana in the deepwater Gulf of Mexico.

In a statement, Chevron said the Walker Ridge Block 98 Well No. 1 encountered more than 400 feet (122 m) of net pay. The well is located approximately 190 miles (308 km) off the Louisiana coast in 6,127 feet (1,868 m) of water and was drilled to a depth of 31,866 feet (9,713 m), or roughly six miles.

The well was drilled with Pacific Drilling’s Santa Ana drillship.

“The Coronado discovery continues our string of exploration successes in the Lower Tertiary Trend, where Chevron is advancing multiple projects,” said Gary Luquette, president, Chevron North America Exploration and Production Company. “It also highlights the importance of the deepwater Gulf of Mexico as a source of domestic energy for the United States.”

Chevron says the well results are still being evaluated and additional work is needed to determine the extent of the resource.

Chevron, with a 40 percent working interest in the prospect, is the operator of the Coronado discovery well. The other owners are ConocoPhillips (NYSE: COP) with 35 percent, a subsidiary of Anadarko Petroleum Corporation (NYSE: APC) with 15 percent and Venari Offshore LLC with 10 percent.

Chevron is one of the largest leaseholders in the Gulf of Mexico and is currently constructing the Jack/St. Malo and Big Foot projects, which are scheduled to begin production in 2014. The company is also conducting appraisal activities at its previously announced Buckskin and Moccasin discoveries, also in the Lower Tertiary Trend.

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