Hess Announces Positive Exploration Results From Liza-2 Well

Hess Corporation (NYSE:HES) has achieved success in the Liza-2 exploration well in the Stabroek block, offshore Guyana.

The results indicate that Liza prospect is a world-class oil discovery with estimated recoverable resources between 800 million and 1.4 billion barrels of oil equivalent.

Located in the Stabroek block, the Liza wells are about 120 miles (193 kilometers) offshore Guyana. The Stabroek block spans across an acreage of 6.6 million acres (26,800 square kilometers).

Drilled by an affiliate of ExxonMobil (NYSE:XOM) – Esso Exploration and Production Guyana Ltd. – the Liza-2 well is about 2 miles (3.3 kilometers) away from the Liza-1 well. The Liza-2 well hit more than 190 feet (58 meters) of oil-bearing sandstone reservoirs in Upper Cretaceous formations. The well was drilled to a total depth of 17,963 feet (5,475 meters) in 5,551 feet (1,692 meters) of water.

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The ExxonMobil unit is also the operator of the Stabroek block with a stake of 45%. Other partners in the block are Hess Guyana Exploration Ltd. and CNOOC Nexen Petroleum Guyana Limited with 30% and 25% interest, respectively.

The results of the Liza prospect emphasize the growth prospects of Hess’ resource base and production. The company continues to assess the resource potential on the broader Stabroek block with further exploration drilling planned.

Hess has transformed to a predominantly exploration and production entity, thereby shifting its growth approach from high-impact exploration to low-risk unconventional oil and gas resources, and a smaller, more focused exploration portfolio. The company divested its downstream businesses including energy marketing, terminals, retail marketing and refining operations. In view of the global economic slowdown and new refining capacity entering the world market, the aforesaid decisions will help enhance Hess’ shareholder value.

Hess holds a Zacks Rank #2 (Buy). Other well-ranked players from the energy sector are Boardwalk Pipeline Partners, LP (NYSE:BWP) , FutureFuel Corp. (NYSE:FF) and ReneSola Ltd. (NYSE:SOL) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).