McMoRan Exploration Co. announced Tuesday that an oil discovery beneath 20 feet of water off the Louisiana coast could be the biggest find in decades, the Houston Chronicle reports.
Drillers found a “135-foot column of hydrocarbon-filled sands” and have estimated the discovery to be nearly 2 trillion cubic feet of resources, a figure that rivals previous discoveries in the Gulf’s deeper waters.
Energy XXI Chairman and CEO John Schiller said the discovery “verifies the ultra-deep potential of the Gulf of Mexico shelf and opens this horizon as a major exploration frontier.”
Jeffries Research, a major global securities and investment banking group, sent a note to investors stating the find “could boost McMoRan’s year-end proved reserve base by 150 percent and Energy XXI’s by 60 percent.”
McMoran and Energy XXI’s stock prices rose by more than 25 percent after the announcement Tuesday morning.