Hess said Thursday that a previously announced offshore Guyana find could hold more than 1 billion barrels.
The New York-based company said in its third quarter results that the Liza-3 well confirmed a “world-class oil discovery” at the Stabroek block in offshore Guyana.
Hess CEO John Hess said that estimated recoverable resources at Liza are now projected to be at the “upper end” of the previously announced range of between 800 million to 1.4 billion barrels of oil equivalent.
Hess added that, on a separate prospect 25 miles northwest of the Liza discovery, the block’s operator completed drilling the Skipjack exploration well.
Hess said that the Skipjack well was unsuccessful and expensed in the third quarter.
The size of the Liza discovery was confirmed in June after ExxonMobil completed the Liza-2 well.
The well was drilled to 17,963 feet in 5,551 feet of water about two miles from the Liza-1 well.
The Stabroek block covers about 6.6 million acres.
Esso Exploration and Production Guyana Limited operates and holds a 45 percent interest in the Stabroek block.
Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.
The Liza wells are located about 120 miles off the coast of Guyana.
Hess reported a net loss of $339 million, or $1.12 per common share, in the third quarter of 2016 compared with a net loss of $279 million in the the prior-year quarter.
On an adjusted basis, Hess reported a net loss of $340 million, or $1.12 per common share, in the third quarter of 2016 compared with an adjusted net loss of $291 million in the year-ago quarter.
The company said that third quarter 2016 after-tax results reflect “lower production and realized selling prices compared with the third quarter of 2015, as well as lower operating costs and depreciation, depletion and amortization expenses.”
Hess reduced its E&P capital and exploratory expenditures by 49 percent to $435 million in the third quarter, down from $849 million in the prior-year quarter.
Third quarter oil and gas production was 314,000 barrels of oil equivalent per day with Bakken net production hitting 107,000 barrels of oil equivalent per day during the quarter.
Hess’ average realized crude oil selling price was $41.50 per barrel in the third quarter of 2016, a 9 percent decline from the year-ago quarter including the effect of hedging.
“Our company continues to take steps to maintain a strong balance sheet and materially reduce our spending,” Hess said.