Stabroek Block estimate now at 9 Billion barrels

Hess has increased its estimated gross recoverable resources discovered offshore Guyana in the Stabroek Block to approximately 9 billion oil-equivalent barrels. In its Third Quarter report on Wednesday, the Company, which holds 30 percent interest in the block, said that discoveries at the Yellowtail-2 and Redtail-1 wells in September pushed the previous estimate up from 8 billion.

This moves Guyana up the global scale of countries with the largest proven oil reserves. In January 2020, ExxonMobil increased its estimate for the Stabroek Block to over 8 billion oil-equivalent barrels after its 16th discovery at the Uaru Well and, some 9 months later, this has been increased again.

At the Stabroek Block, the operator announced discoveries at the Yellowtail-2 and Redtail-1 exploration wells. 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. Redtail-1, the 18th discovery on the Block, encountered approximately 232 feet of high-quality oil-bearing sandstone and is located 1.5 miles northwest of the Yellowtail discovery. The estimate of gross discovered recoverable resources on the Block has been increased to approximately 9 billion boe.

Following the completion of appraisal work at the Yellowtail-2 well, the Stena Carron drillship began drilling the Tanager-1 well on the Kaieteur Block, located 46 miles northwest of Liza in August. Tanager-1 drilling operations are ongoing.

The Noble Don Taylor drillship completed the drilling of the Redtail-1 well, and is currently drilling and completing Liza Phase 2 development wells. The other two drillships, the Noble Bob Douglas and the Noble Tom Madden, are drilling and completing Liza Phase 1 and Phase 2 development wells. At the Payara Field on the Stabroek Block, 10 drill centers are planned with a total of 41 wells, including 20 production wells and 21 injection wells.

Though the Company announced a net loss of $243 million in the Third Quarter of 2020, Chief Executive Officer (CEO), John Hess said: “Our differentiated portfolio of assets, including multiple phases of low-cost Guyana oil developments, positions us to deliver industry-leading cash flow growth and drive our company’s breakeven price to under $40 per barrel Brent by mid-decade.”

Hess’ net production from the Liza Field, which commenced in December 2019, averaged 19,000 bopd in the third quarter of 2020.