A group led by Chevron discovered a “significant oil pay” at the deepwater Guadalupe well in the U.S. Gulf of Mexico, they said Thursday.
The discovery was made at the Keathley Canyon Block 10 in 3,992 feet of water, 180 miles off the Louisiana coast.
The well was drilled to a total depth of 30,173 feet.
More tests are being conducted on the well and additional appraisal activity will be needed to determine the size of the reservoir, Chevron said.
The Guadalupe well was drilled by Transocean’s Discoverer India deepwater drillship.
Chevron is the operator of the well with a 42.5 percent stake. BP holds a 42.5 percent stake and Texas-based Venari Resources holds a 15 percent stake.
Chevron subsidiary Chevron U.S.A. began drilling the Guadalupe well in June 2014.
In 2013, Chevron subsidiaries had an average net daily production of 143,000 barrels of crude oil, 347 million cubic feet of natural gas and 15,000 barrels of natural gas liquids in the Gulf of Mexico.
The company said it expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year.
BP has made three other discoveries in the emerging Paleogene trend in the deepwater U.S. Gulf of Mexico: Gila, Tiber, and Kaskida.
“Guadalupe builds on our already strong position in the deepwater U.S. Gulf of Mexico, a core focus area where we expect significant production growth over the next two years,” Chevron’s upstream said.