Chevron makes oil discovery in deepwater Gulf of Mexico

Chevron Corp. (NYSE: CVX) has made a new oil discovery at the Moccasin prospect in the deepwater US Gulf of Mexico.

Offshore staff

SAN RAMON, California -- Chevron Corp. has made a new oil discovery at the Moccasin prospect in the deepwater US Gulf of Mexico.

The Keathley Canyon block 736 Well No. 1 encountered more than 380 ft of net pay in the Lower Tertiary Wilcox Sands. The well is about 216 mi off the Louisiana coast in 6,759 ft of water and was drilled to a depth of 31,545 ft.

"The Moccasin discovery underscores the importance of the deepwater Gulf of Mexico as a source of domestic energy for the US and as a focus area for Chevron's worldwide exploration portfolio," says George Kirkland, vice chairman, Chevron Corporation. "Moccasin is an important addition to our queue of high-quality opportunities around the globe."

Chevron began drilling the Moccasin well in March 2010. That activity was stopped in June 2010 when the US government imposed a moratorium on deepwater drilling in the GoM. Drilling resumed in March 2011 after the US Bureau of Ocean Energy Management, Regulation and Enforcement approved Chevron's revised drilling permit application.

The well results are still being evaluated, and additional work will be needed to determine the extent of the resource. Chevron, with a 43.75% working interest in the prospect, was the operator of the Moccasin discovery well. Other Moccasin owners are BP, with 43.75%, and Samson Offshore Company, with 12.5%.

9/6/2011

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