Chevron will drill in Keathley Canyon Block 736 in 6,750 feet (2,057 meters) of water, about 216 miles off the Louisiana coast, the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement said today in a statement.
While Chevron is the fifth company permitted to resume work in the area following the last year’s Deepwater Horizon rig explosion, it’s the first to be allowed to tap a reservoir that has never produced, according to the regulator.
Chevron rose 20 cents to $105.68 at 11:57 a.m. in New York Stock Exchange composite trading. The shares gained 16 percent this year before today.
Initial drilling on the well began a year ago, and was suspended on June 9, according to the statement.
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