OREANDA-NEWS. July 6, 2011. Accumulations are among the largest found in the Gulf of Mexico in the last decade. We announce two major oil discoveries and a gas discovery in ultradeep Hadrian area waters, in the Keathley Canyon concession, in the U.S. portion of the Gulf of Mexico. Recoverable volumes are estimated in excess of 700 million barrels of oil equivalent in the Keathley Canyon blocks, among the biggest discoveries made in the Gulf of Mexico in the last decade.

The Hadrian discoveries are located about 400 km (250 miles) southwest of New Orleans at 2,100 meters (7,000 feet) water depth. Preliminary assessments point to the existence of an important cluster of hydrocarbon discoveries in this region.

The discovery was made by drilling well KC919# 3, in block KC 919, and confirmed over 144 meters (475 feet) of net oil pay. Deeper targets are yet to be drilled.

Previous drilling activities had already encountered oil in blocks KC 919 and KC 918 - Hadrian North - and gas in blocks KC 963 and KC 964 - Hadrian South. In Hadrian North, high-quality oil and associated gas were found in the reservoirs, with over 167 meters (550 feet) of oil pay and a minor amount of gas with significant upside potential. In Hadrian South, almost 61 meters (200 feet) of natural gas pay were discovered.

ExxonMobil is the operator with a 50% working interest in blocks KC 918, KC 919, KC 963, and KC 964. Petrobras America Inc., a Petrobras subsidiary headquartered in Houston, Texas, holds 50% stakes in block KC 918 and 25% in blocks KC 919, KC 963, and KC 964. The remaining 25% are held by Eni Petroleum US LLC.

Our operation in the Gulf of Mexico

We are one a leading company in deepwater operations and benefits from the experience and technology it has developed in its offshore operations in Brazil.

We are the operator of the Cascade (100%) and Chinook (66.7%) fields, which are currently under development, and holds a stake in the Saint Malo (25%), Stones (25%) and Tiber (20%) discoveries. We also have permission to explore a significant area with similar characteristics, which will be tested, consolidating a solid foundation for our operations in the Gulf of Mexico.