Chevron Announces New Oil Find in U.S. Gulf of Mexico

Chevron Corporation, the integrated energy company, has announced an oil discovery in the deepwater U.S. Gulf of Mexico. The company said the find is in an offshore field development area known as the Coronado prospect.

Chevron, which is based in San Ramon, Calif., said that the Walker Ridge Block 98 Well No. 1, where the discovery was made, is located about 190 miles off the Louisiana coast in 6,127 feet of water and was drilled to a depth of 31,866 feet.

The well encountered more than 400 feet of net pay --- the thickness of an oil reservoir capable of producing hydrocarbons.

"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 said additional work was needed to determine the extent of the resource

With a 40 percent working interest in the prospect, Chevron is the operator of the Coronado discovery well. Other owners of the Coronado prospect are ConocoPhillips, with a 35 percent stake, a subsidiary of Anadarko Petroleum Corp., with a 15 percent stake, and Venari Offshore LLC with a 10 percent stake.

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

Earlier this month, Chevron reaffirmed its production target of 3.3 million barrels of oil-equivalent by 2017. That goal was first announced three years ago.

In Monday's regular trading session, Chevron (CVX) was trading at $121.68, up $0.50, or 0.41 percent, on a volume of 2,380 shares.