Hammerhead is commercial and heavy..Hess aka Jethro14 Nov 2019 17:38
Never let the boss have a microphone:
Speaking at the BofA Merill Lynch Global Energy Conference earlier this afternoon, Hess CEO John Hess commented on Tullow's (TLW.LN) announcement this morning that lab tests indicate that oil recovered from both its Jethro-1 and Joe-1 in Guyana, where Hess also operates, found the oils to be heavier crudes with higher sulfur content (Tullow shares fell (27%) today following the disclosure). Specifically, in response to a question of whether the market should be concerned about its Hammerhead area, Hess stated::
"No. The market should not be concerned about Hammerhead. We've drilled three wells there, Exxon is our operator. We wouldn't have drilled three wells unless we thought we had something commercial. We're not ready to give all the specifics of that and, obviously, we didn't know that block that Tullow has is inboard of us. It's closer to the shore.
"And what we've seen from our block, remember our block, the Stabroek Block, is 1,150 Gulf of Mexico block. It's a massive real estate area. We've gotten 14 successful discoveries and only two dry holes. That's a pretty good success rate....And as you go onshore, as you go into the shallow waters, Hammerhead is an indicator of this, the oil is definitely heavier.
"...in the way the geology of the block works, as you go onshore, as you go inboard, the oil tends to get heavier. That's the case with Hammerhead. And so, it doesn't surprise me that Tullow has a heavy outcome.