Hess Announces Increase in Recoverable Resource Estimate for Stabroek Block and Significant Discovery at Cataback, Offshore Guyana

Rhea-AI Summary

Hess Corporation (NYSE: HES) announced an increase in the recoverable resource estimate for the Stabroek Block in Guyana to approximately 10 billion barrels of oil equivalent, up from over 9 billion. The latest discovery, made at the Cataback well, includes 243 feet of net pay in high-quality hydrocarbon-bearing sandstone. CEO John Hess emphasized the potential for future developments, marking Cataback as the 21st significant discovery in the block, which spans 6.6 million acres. Hess holds a 30% interest in the block, alongside ExxonMobil and CNOOC.

Positive

• Increased gross discovered recoverable resource estimate to approximately 10 billion barrels of oil equivalent.
• Cataback well discovery adds to the potential for future developments.
• 21st significant discovery in the Stabroek Block enhances strategic position.

Negative

• None.

• Gross discovered recoverable resource estimate for Stabroek Block increased to approximately 10 billion barrels of oil equivalent
• Cataback is the 21^st significant discovery on the block
• Recent discoveries further enhance the development potential of the Stabroek Block

NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE: HES) today announced an increase in the gross discovered recoverable resource estimate for the Stabroek Block offshore Guyana to approximately 10 billion barrels of oil equivalent, up from the previous estimate of more than 9 billion barrels of oil equivalent.

The updated resource estimate includes another significant discovery on the Stabroek Block at the Cataback well. The well encountered 243 feet (74 meters) of net pay in high quality hydrocarbon bearing sandstone reservoirs of which 102 feet (31 meters) is oil bearing. Cataback is located approximately 3.7 miles (6 kilometers) east of Turbot-1 and was drilled in 5,928 feet (1,807 meters) of water by the Noble Tom Madden.

CEO John Hess said: “We are pleased that Cataback is our 21^st significant discovery on the Stabroek Block and further underpins the potential for future developments. We continue to see multibillion barrels of additional exploration potential remaining on the block.”

The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Cautionary Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation, the expected number, timing and completion of our development projects and estimates of capital and operating costs for these projects; estimates of our crude oil and natural gas resources and levels of production; and our future financial and operational results. Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices or demand for crude oil, NGLs and natural gas, including due to the global COVID-19 pandemic or the outbreak of any other public health threat, or due to the impact of competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves and in achieving expected production levels, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions; inherent uncertainties in estimating quantities of proved reserves and resources; changes in laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures which we may not control; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; potential disruption or interruption of our operations due to catastrophic events, including the global COVID-19 pandemic; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission. As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211007005615/en/

Investor Contact:

Jay Wilson

(212) 536-8940

jrwilson@hess.com

Media Contact:

Lorrie Hecker

(212) 536-8250

lhecker@hess.com

Source: Hess Corporation

FAQ

What is the new recoverable resource estimate for Hess Corporation's Stabroek Block?

The new recoverable resource estimate for the Stabroek Block is approximately 10 billion barrels of oil equivalent.

What significant discovery was made at the Cataback well?

The Cataback well encountered 243 feet of net pay, including 102 feet of oil-bearing sandstone.

How many significant discoveries have been made in the Stabroek Block?

The Cataback discovery marks the 21st significant find in the Stabroek Block.

What percentage of interest does Hess Corporation have in the Stabroek Block?

Hess Corporation holds a 30% interest in the Stabroek Block.