Hess’s Ghana Oil Find One-Third Thicker Than Prior Report
The three layers of oil total 490 feet (150 meters) thick, Hess said in a statement today. That compares with 370 feet in two intervals the company reported on April 27, before drilling an additional 1,100 feet to a total depth of 16,436 feet.
It’s the second discovery reported off Ghana this week. Kosmos Energy Ltd., based in Dallas, reported an oil deposit 3 meters thick yesterday in its Banda exploration well in the adjacent West Cape Three Points lease.
“Hess needs to accelerate its production growth to be more in line with peers,” Brian Youngberg, a St. Louis-based analyst for Edward Jones & Co. who rates the shares “buy” and owns none, said today in a telephone interview. “Exploratory finds go a long way toward helping that and Ghana so far this year has been the biggest find.”
Hess operates the well in the Deepwater Tano / Cape Three Points area and owns 90 percent of it, according to the statement. Ghana National Petroleum Corp., the state-owned oil company, owns the remainder.
The Hess announcement was made before regular trading began on U.S. markets. Hess rose 87 cents, or 1.2 percent, to $75.25 at 8:11 a.m. in New York. Before today, the shares have fallen 2.8 percent this year.
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