A further increase in the gross recoverable resources is anticipated at Guyana’s Stabroek Block, adding to the recently upgraded 9 billion boe estimate, according to Hess Corporation.
Greg Hill, Chief Operating Officer, explained to investors on the company’s Q3 earnings call last week that the 9 billion barrels of oil equivalent (boe) upgrade that was announced brings the resources “close to being up to date” signaling there is room for further upside.
He said movement from ‘greater than 8 billion boe’ to ‘approximately 9 billion boe’ reflects the results of drilling in the Uaru, Yellowtail-2 and Redtail area. “So, that brings us close to being up-to-date.”
Uaru, the 17th discovery on the Stabroek Block, encountered approximately 94 feet (29 metres) of high-quality oil-bearing sandstone reservoir located approximately 10 miles (16 kilometres) northeast of the Liza field.
Meanwhile, Yellowtail-2, the 17th discovery on the block, encountered approximately 69 feet of high-quality oil-bearing reservoirs adjacent to and below the Yellowtail-1 discovery while Redtail-1, the 18th discovery on the block, encountered approximately 232 feet of high-quality oil-bearing sandstone located 1.5 miles northwest of the Yellowtail discovery.
“There is obviously some additional upside to that number [9 billion boe] that we’ll figure out with further testing and potential appraisal in and around that area,” Hill said. “So, there is more upside coming on top of that number, but that really reflects the results of those three wells.”
Focusing on the channel system, Hill said the Santonian is 3000 feet deeper than the Campanian. “They currently represent that 9 billion barrels,” he pointed out. “And if you look at it on seismic, the extent of the channel systems is as extensive or more extensive than the Campanian. And the industry has got five penetrations in it, two on Stabroek and three in Suriname, obviously on Apache’s block.”
This, he said, will be the subject of extensive exploration and appraisal drilling over the next two years. “And depending on how that turns out, the Santonian also, as well as multi-billion barrels of remaining upside in the Campanian; all of that could be used as both all age fillers and new hub class developments.”
Hill said the potential for several billion more barrels of oil being discovered on the block will push exploration and production activities offshore Guyana beyond the next decade.
“So, I would like to say Guyana is a story that’s going to go on more than 10 years because of that multi-billion barrels of upside, and we haven’t even scratched the surface of the Santonian yet and we’re in the early innings in the Campanian still.”
ExxonMobil is operator at the Stabroek Block with 45 percent interest while Hess holds 30 percent interest and CNOOC has a 25 percent stake.
