ExxonMobil (XOM) Departs Kaieteur Oil Block Offshore Guyana - Yahoo Finance

ExxonMobil (XOM) Departs Kaieteur Oil Block Offshore Guyana

Exxon Mobil Corporation XOM and Hess Corporation HES decided to discontinue exploration activities in the Kaieteur block in Guyana’s deepwaters due to unsatisfactory exploration results, per a Reuters report.

ExxonMobil’s exploration efforts and the oil discovery in the Kaieteur Block have brought attention to Guyana’s significant potential in the oil and gas industry. Their initial exploration well, Tanager-1, revealed the presence of 65.3 million barrels of oil in the block. However, the discovered oil volume was insufficient to support a viable standalone development.

The decision to exit the Kaieteur Block aligns with the companies’ focus on their more significant and highly productive Stabroek Block. To date, they have discovered more than 11 billion barrels of oil and gas resources in the block, making it a priority for their exploration and development efforts.

Kaieteur, covering 3.3 million acres, is approximately half the size of the Stabroek block and was one of two smaller non-productive blocks held by XOM in the region. Currently, ExxonMobil operates the block with a 35% working interest.

ExxonMobil and Hess transferred their ownership interests in the block to Ratio Guyana Limited and Cataleya Energy Limited, the original holders of the exploration licenses. Ratio Guyana Limited is set to assume the role of operator, subject to government approval, taking over from ExxonMobil.

XOM plans to have a production capacity of more than 1.2 million barrels of oil and gas equivalent per day from Stabroek by 2027. The decision to withdraw from the Kaieteur Block does not affect ExxonMobil’s extensive exploration and development plans for Guyana.

ExxonMobil has confirmed that it is continuing to progress with plans for the construction of six floating production, storage and offloading vessels in Guyana. The company maintains its operations in the highly successful Stabroek Block and the Canje Block offshore Guyana.

Price Performance

Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 9.1% compared with the industry’s 8.1% growth.

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Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Range Resources Corporation RRC is among the top 10 natural gas producers in the United States. In the prolific Appalachian Basin, the company has a strong focus on stacked-pay gas projects.

Range Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for RRC’s 2023 and 2024 earnings per share is pegged at $2.11 and $2.98, respectively.

Pioneer Natural Resources Company PXD is an explorer and producer of oil, natural gas and natural gas liquid. The upstream energy player’s debt to capitalization has been persistently lower than the industry over the past few years, reflecting considerably lower debt exposure.

Pioneer has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for PXD’s 2023 and 2024 earnings per share is pinned at $20.85 and $24.75, respectively.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

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Range Resources Corporation (RRC) : Free Stock Analysis Report

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