ExxonMobil (XOM) Initiates Lau-Lau 2 Appraisal Offshore Guyana

Core Insights - ExxonMobil has initiated appraisal activities at the Lau-Lau 2 well site in the Starbroek block, offshore Guyana, following a previous discovery of 96 meters of high-quality sandstone reservoirs at Lau-Lau 1 in 2022 [1] - The offshore discovery in the Starbroek block is estimated to have reserves exceeding 100 million barrels of oil equivalent, with appraisal activities scheduled from June 16 to July 31, 2024 [2] - Since 2015, over 30 oil discoveries have been made in the Starbroek block, along with significant gas reserves totaling 17 trillion cubic feet, indicating a positive outlook for Guyana's oil and gas sector [2] Company Developments - The Lau-Lau 2 exploration well is part of ExxonMobil's extensive exploration program, which includes other wells such as Haimara 3 and 4, Trumpetfish-1, and Bluefin-1 [2] - ExxonMobil's previous discoveries in the Starbroek block include Lau-Lau 1 and Fangtooth-1, with oil reservoirs measuring 315 ft. and 164 ft. respectively, marking the 27th discovery in the block [1] Industry Context - The positive outlook for Guyana's oil and gas sector suggests the potential for up to 10 development projects in the region [2] - The energy sector includes companies like Archrock, SM Energy, and Hess Midstream, with varying Zacks Ranks indicating their market positions [3][4]