By Michael Dabaie

Exxon Mobil said Tuesday it made an oil discovery at the Uaru-2 well in the Stabroek Block offshore Guyana.

Uaru-2 will add to the previously announced gross discovered recoverable resource estimate for the block, which is currently estimated to be about 9 billion oil-equivalent barrels.

The company said that drilling at Uaru-2 encountered about 120 feet of high quality oil bearing reservoirs including newly identified intervals below the original Uaru-1 discovery. The well was drilled in 5,659 feet of water and is located about 6.8 miles south of the Uaru-1 well.

"The Uaru-2 discovery enhances our work to optimally sequence development opportunities in the Stabroek Block," said Mike Cousins, senior vice president of exploration and new ventures at Exxon.

Exxon said it anticipates at least six projects online by 2027 and sees potential for up to 10 floating production storage and offloading vessels to develop its current recoverable resource balance.

The Stabroek Block is 6.6 million acres. Exxon affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25% interest.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

April 27, 2021 09:40 ET (13:40 GMT)

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