Yahoo Finance ExxonMobil (XOM) Initiates Lau-Lau 2 Appraisal Offshore Guyana
ExxonMobil Corporation XOM has started appraisal activities at the Lau-Lau 2 well site, in the Starbroek block, offshore Guyana. Previously, in 2022, ExxonMobil had discovered 96 meters of high-quality sandstone reservoirs containing hydrocarbons at the Lau-Lau 1 exploration well site. The announcement was made by Guyana’s Maritime Administration Department (“MARAD”). MARAD also mentioned that the Noble Sam Croft drillship will be used for the appraisal well.
ExxonMobil has made several major hydrocarbon discoveries in the prolific Starbroek Block, offshore Guyana. The Lau-Lau 1 and Fangtooth-1 discoveries (made previously) had an oil reservoir of 315 ft. and 164 ft., respectively. These discoveries were announced in 2022, marking the 27th discovery in the block at the time. Notably, the Lau-Lau 1 exploration well had a longer hydrocarbon column than Liza-1, ExxonMobil’s first major oil discovery offshore Guyana.
Westwood Global Energy Group believes that the offshore discovery has estimated reserves of more than 100 million barrels of oil equivalent. The appraisal activities are scheduled to take place from Jun 16 to Jul 31, 2024, per MARAD’s statement.
The Lau-Lau 2 exploration well is a part of the energy major’s extensive exploration program, which includes other wells like Haimara 3 and 4, Trumpetfish-1 and Bluefin-1. Since 2015, more than 30 oil discoveries have been made in the Starbroek block, along with the identification of significant gas reserves, adding up to 17 trillion cubic feet. ExxonMobil has also highlighted the positive outlook for Guyana’s growing oil and gas sector. The company has stated that the region can potentially support up to 10 development projects.
Zacks Rank and Key Picks
Currently, XOM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, SM Energy SM and Hess Midstream Partners LP HESM. Archrock presently sports a Zacks Rank #1 (Strong Buy), while SM Energy and Hess Midstream carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
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