BP's Commitment to GofM Confirmed: New Oil Discovered
BP says it has made a significant oil discovery at its Gila prospect (which it co-owns with ConocoPhillips (COP)) in the deepwater US Gulf of Mexico. This is BP (BP)’s third discovery in recent years in the emerging Paleogene trend in the Gulf of Mexico and reflects the company’s ongoing commitment to the US offshore region.
The Gila discovery was made by an exploration well on Keathley Canyon Block 93, about 300 miles southwest of New Orleans, in approximately 4,900 feet of water.
The well, which penetrated multiple Paleogene-aged reservoir sands, was drilled to a total depth of 29,221 feet. Appraisal drilling, including completion of drilling through the Paleocene section, will be required to determine the size and potential commerciality of the discovery.
(Paleogene describes geological formations dating from a period between approximately 66 million and 23 million years ago. The Paleocene is the first geological epoch within the Paleogene period and lasted between approximately 66 million and 55 million years ago(.
“The Gila discovery is a further sign that momentum is returning to BP’s drilling operations and well execution in the Gulf of Mexico,” said Richard Morrison, Regional President of BP’s Gulf of Mexico business.
BP owns a majority interest in the Gila discovery which is located approximately 25 miles west of Tiber, also located in the Keathley Canyon area. The lease for Keathley Canyon Block 93 was acquired in the Western Gulf of Mexico Lease OCS Sale 187 in 2003.
The company adds that it and its heritage companies have been at work in the Gulf of Mexico since the 1950s, and they have been exploring in the deepwater Gulf of Mexico for more than a quarter of a century.