Friday, May 20, 2022

Fangtooth-1 unlocks new play; will ‘add significantly’ to 10-billion-barrel oil resource – Hess

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While the recent Fangtooth-1 discovery augments the list of over 20 significant finds in the Stabroek Block by operator ExxonMobil, its value should not be overlooked or underappreciated, says Hess Corporation’s Chief Executive Officer (CEO), John Hess.

During Goldman Sachs’ Global Energy and Clean Technology Conference 2022 held on Thursday, Hess, who spoke extensively about the exploration outlook of Guyana, noted that Fangtooth-1 is actually the first test of the deepwater horizon of the Lower Campanian and Santonian plays. Hess said success in this relatively new territory for the partners proves his well reported conclusion that the Stabroek Block holds multi-billion-barrel exploration potential that is far beyond the 10 billion barrels of oil equivalent resources already discovered.

The Hess CEO said, “…we were happy to announce more discoveries, being Fangtooth-1 and Lau Lau-1. Both of these are significant in pay counts and have significant high-quality reservoirs as well as aerial extent so they will add to the 10 billion barrels of oil equivalent already discovered and they should be fairly significant adds and will go into the queue of development opportunities.”

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He continued, “But Fangtooth itself is meaningful because it was the first of the deeper horizon of the Lower Campanian and Santonian that we just tested and the other times we tested those horizons it was focusing from the shallower horizon and these horizons which by the way are 15,000 feet for the shallow horizon and 18,000 feet for the deeper horizon.”

Furthermore, the Hess executive said Fangtooth-1 shows that the joint venture partners still have a lot of running room for exploration in Guyana. “And when we say there is multi-billion barrels of exploration potential remaining above and beyond what was discovered, Fangtooth validates that,” Hess added.

He said too that Fangtooth-1 is a really significant discovery since it has opened up another deep play for the partners to pursue.

Taking this into account, he said Guyana is truly a unique cash flow story for investors, whether they are in the hydrocarbon industry or not, to take their money.  For 2022, he said the partners are excited about the organic leverage it still has on the block and will continue its efforts to grow the queue of developments as well as their resource base of “low cost, high value, low carbon oil.”

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It was on Wednesday the Guyana Government disclosed that the country scored big again with two significant discoveries.

The administration said the Fangtooth-1 well encountered approximately 164 feet (50 meters) of high-quality oil-bearing sandstone reservoirs and was drilled in 6,030 feet (1,838 meters) of water. It is located approximately 11 miles (18 kilometers) northwest of the Liza field.

As for the Lau Lau-1 well, it encountered approximately 315 feet (96 meters) of high-quality hydrocarbon-bearing sandstone reservoirs. The well was drilled in 4,793 feet (1,461 meters) of water and is located approximately 42 miles (68 kilometers) southeast of the Liza field.

OilNOW also reported earlier this week that Fangtooth was drilled by the Stena DrillMAX, and Lau Lau was drilled by the Noble Don Taylor, which are two of six drillships supporting exploration and development drilling across three blocks operated by ExxonMobil offshore Guyana.

Exxon has found an average of 1.7 billion barrels of oil per year in Guyana since 2015

The Stabroek block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.

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