Hess Announces Two More Discoveries Offshore Guyana

Rhea-AI Summary

Hess Corporation (NYSE: HES) announced two new oil discoveries at the Seabob-1 and Kiru-Kiru-1 well locations in the Stabroek Block, bringing the total discoveries for 2022 to seven. These wells contribute to the estimated 11 billion barrels of recoverable resources in the area. Seabob-1 encountered 131 feet of high-quality oil-bearing sandstone, while Kiru-Kiru-1 encountered 98 feet of hydrocarbons. The company continues to develop multiple projects with expected production capacities surpassing 1 million barrels per day by 2027.

Positive

• New discoveries at Seabob-1 and Kiru-Kiru-1 wells increase total discoveries in 2022 to seven.
• Estimated recoverable resources in the Stabroek Block increased to approximately 11 billion barrels of oil equivalent.
• Production capacities of Liza FPSOs are reaching over 360,000 barrels per day, contributing positively to revenue expectations.

Negative

• Drilling operations at Kiru-Kiru-1 are ongoing, indicating potential for unforeseen delays.

• Seabob-1 and Kiru-Kiru-1 are the 6th and 7th discoveries in 2022
• Discoveries will add to the previous discovered recoverable resource estimate for the Stabroek Block of approximately 11 billion barrels of oil equivalent
• Liza Unity and Liza Destiny FPSOs have reached their combined design capacity of more than 360,000 gross barrels of oil per day

NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE: HES) today announced two new discoveries at the Seabob-1 and Kiru-Kiru-1 wells on the Stabroek Block offshore Guyana. The discoveries, which are the sixth and seventh this year, will add to the block’s previously announced gross discovered recoverable resource estimate of approximately 11 billion barrels of oil equivalent.

The Seabob-1 well encountered approximately 131 feet (40 meters) of high quality oil bearing sandstone reservoirs. The well was drilled in 4,660 feet (1,421 meters) of water by the Stena Carron and is located approximately 12 miles (19 kilometers) southeast of the Yellowtail Field.

The Kiru-Kiru-1 well encountered approximately 98 feet (30 meters) of high quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 5,760 feet (1,756 meters) of water by the Stena DrillMAX and is located approximately 3 miles (5 kilometers) southeast of the Cataback-1 discovery. Drilling operations at Kiru-Kiru are ongoing.

“We are excited to announce two more discoveries on the Stabroek Block, bringing our total this year to seven,” CEO John Hess said. “These discoveries will add to the discovered recoverable resource estimate for the block of approximately 11 billion barrels of oil equivalent, and we continue to see multibillion barrels of future exploration potential remaining.”

Hess and its co-venture partners currently have four sanctioned developments on the Stabroek Block. The Liza Phase 1 development, which began production in December 2019, reached its new production capacity of more than 140,000 gross barrels of oil per day in the second quarter of 2022 following production optimization work on the Liza Destiny floating production, storage and offloading vessel (FPSO). The Liza Phase 2 development, which achieved first oil in February 2022 utilizing the Liza Unity FPSO, reached its production capacity of approximately 220,000 gross barrels of oil per day earlier this month. The third development at Payara is on track to come online in late 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day. The fourth development, Yellowtail, will be the largest development to date and is expected to come online in 2025, utilizing the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day.

At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.

The Stabroek Block is 6.6 million acres. 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, natural gas liquids and natural gas, including due to COVID-19, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns; 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 COVID-19 or climate change; 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/20220726006020/en/

Investor:

Jay Wilson

(212) 536-8940

jrwilson@hess.com



Media:

Lorrie Hecker

(212) 536-8250

lhecker@hess.com

Source: Hess Corporation

FAQ

What are the recent discoveries by Hess Corporation (HES) in Guyana?

Hess Corporation announced discoveries at the Seabob-1 and Kiru-Kiru-1 wells, marking the sixth and seventh discoveries on the Stabroek Block in 2022.

How much recoverable oil resource is estimated for the Stabroek Block?

The recoverable resource estimate for the Stabroek Block is approximately 11 billion barrels of oil equivalent.

What is the current production capacity of Hess's Liza FPSOs?

The combined production capacity of the Liza Unity and Liza Destiny FPSOs has reached over 360,000 gross barrels of oil per day.

What are the future production expectations for Hess Corporation (HES)?

Hess Corporation expects to have at least six FPSOs with a production capacity exceeding 1 million gross barrels of oil per day by 2027.