Shares in BP (LSE: BP) (NYSE: BP.US) rose marginally in early trade this morning, following the announcement of a “significant” oil find in the deepwater Gulf of Mexico at its Gila prospect.
BP co-owns the Gila site with ConocoPhillips but retains a majority interest. The well was drilled to a total depth of 29,221 feet, and is the oil major’s third discovery in recent years in the emerging Paleogene play system, following Kaskida in 2006 and Tiber in 2009.
BP’s Global Head of Exploration Mike Daly commented:
“Subject to successful appraisal, Gila, Tiber and Kaskida together offer the potential for significant future oil developments in the Keathley Canyon area.”
Appraisal drilling will now be required to determine the size and potential commerciality of the discovery, with management highlighting its commitment to the area as Regional President of BP’s Gulf of Mexico business Richard Morrison stated:
“The Gila discovery is a further sign that momentum is returning to BP’s drilling operations and well execution in the Gulf of Mexico.”
