Hammerhead-1, @ExxonMobil’s, @Hess’ 9th discovery in #Guyana, ‘thickest single sand package’ on #Stabroek Block

Hammerhead could jump the queue in terms of being ahead of some of the other phases on  the Stabroek Block– Hess

Extremely Positive for Guyana and Canje

OilNOW 0

November 1, 2018

The Hammerhead-1 well, where approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir was encountered by the Stena Carron drillship in August offshore Guyana is the 'thickest single sand package' drilled on the Stabroek Block, according to President and Chief Operating Officer of Hess Corporation, Gregory P. Hill.

Hess has a 30 percent stake in the Stabroek Block where ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. is operator with 45 percent interest and CNOOC Nexen has 25 percent.

Speaking on a 3^rd quarter earnings call on Wednesday, Hill said Hammerhead is a massive accumulation and very thick sand package. "In fact, it's the thickest single sand package that we drilled on the block. It's a very large structure so it's going to require some additional appraisal. What we can say is that the results of the DST were good, meaning that the reservoir quality is excellent and the reservoir seems to be well-connected."

He was at the time responding to a question from Doug Leggate – Bank of America Merrill Lynch, who queried about the company's plans to potentially fast-track Hammerhead to development stage. Leggate also wanted to confirm that the Hammerhead discovery was an addition to the already estimated volume of more than 4 billion barrels of recoverable oil found on the block.

"You're right to say that Hammerhead's accretive to the 4 billion barrels and it could jump the queue in terms of being ahead of some of the other phases that were on the Turbot cluster, but it's too early to say that because we need some additional appraisal before we make that final decision. But, again, it is accretive to the 4 billion barrels," Hill said in response.

Hammerhead-1, which accounted for ExxonMobil's 9^th discovery in Guyana, was safely drilled to 13,862 feet (4,225 meters) depth in 3,373 feet (1,150 meters) of water.

What do you want? #RenewableEnergy. When do you want it? Now!

Renewables are a public opinion juggernaut. Being against them is no longer an  option. The industry's best and only hope is to slow down the stampede a bit (and that's what they plan to try).

100 percent renewables is a wildly popular goal

The core of the industry's dilemma is captured in this slide (on the left is the industry perspective):

EEI

Utilities don't think it is wise or feasible to go 100 percent renewables. But the public loves it.

And I mean loves it. Check out these numbers from the opinion survey:

In our polarized age, here is something we almost all agree on: Renewable energy is awesome.

Here's the most striking slide in the presentation:

EEI

In case you don't feel like squinting, let me draw your attention to the fact that a majority of those surveyed (51 percent) believe that 100 percent renewables is a good idea even if it raises their energy bills by 30 percent.

The Pangea Advisors Blog: What do you want? #RenewableEnergy. When do you wa...: 100% renewable energy: the public wants it, and quick - Vox Renewables are a public opinion juggernaut. Being against them is no longer an option.

The Pangea Advisors Blog

Pangea on Twitter

Looking to create pure play #oil sands company, #Canada’s @HuskyEnergy offers 37% premium in hostile bid for @MEGenergyCorp $MEG.TO $HSE.TO

Will this mark the bottom and signal a major revival for the underperforming Canadian oil sector?

Not that long ago MEG energy,  $MEG.TO was considered a distressed company. Amazing how US$80 barrel can change things so quickly...

Investors have been focusing on high growth capital intensive Permian plays while ignoring large FCF stories in the oil sands. This may likely change soon. 

The combination of this announcement and the likely go ahead decision for the $31Bn LNG Canada project by Shell and its partners may mark the bottom and a major revival for the underperforming Canadian oil sector. 

Given the parties involved in this deal, implications and possibilities are significant for the sector. 

Still clearly cheaper to buy than to build in the oil sands. 

See more on the transaction on Bloomberg here: https://bloom.bg/2NcAxjF

https://Bit.ly/MasterEnergyBlog

https://www.facebook.com/MasterEnergyNews