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Huge Oil Find Could Be Good News For U.S. Reserves
Well Drilled In Gulf Of Mexico


POSTED: 4:56 am PDT September 5, 2006
UPDATED: 10:56 am PDT September 5, 2006

OSLO, Norway -- How much oil has been found in a new well deep in the Gulf of Mexico?

That's the question being asked after the announcement from a trio of companies led by Chevron. Tests of a deep water well in the Gulf are promising.

The Wall Street Journal said the find could boost U.S. reserves by as much as 50 percent, but more testing is needed and a steady stream of oil coming from the well is still some time away.

During the test, the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil a day.

The well was drilled in the Walker Ridge area of the Gulf, about 270 miles southwest of New Orleans and 175 miles off the coast. It followed up a discovery made by Chevron in 2004.

Chevron said the well set a variety of records, including the deepest well successfully tested in the Gulf of Mexico. Chevron said it was drilled to a total depth of more than 28,000 feet in waters that are 7,000 feet deep.

Chevron has a 50 percent stake in the field, while Statoil and Devon Energy own 25 percent each.

"During the test the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day. Test results are very encouraging and may indicate a significant discovery," Statoil said in a statement. "The full magnitude of the field's potential is still being defined."