Tuesday, September 05, 2006; Posted: 04:11 AM
(RTTNews) - Chevron Corp. said that it has completed a production test on the Jack #2 well at Walker Ridge Block 758 in the U.S. Gulf of Mexico. The company noted that the Jack well was completed and tested in 7,000 feet of water, and more than 20,000 feet under the sea floor. The Jack #2 well was drilled to a total depth of 28,175 feet, Chevron added.
The test was conducted during the second quarter of 2006 and was designed to evaluate a portion of the total pay interval. Chevron stated that along with its co-owners, it plans to drill an additional appraisal well in 2007.
Further, Chevron continued to emphasize safety as a priority during the Jack well test, and indicated that the team achieved no days away from work incidents, and no spills.
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Deep sea diving for oil: A stock we’ll to take a closer look at? (click on and page down)
In order to fully access this oil would require investments of billions of dollars for drilling sites and pipelines, and would obviously require years to be built. Experts expect no oil to be delivered from "Jack No. 2" oil before 2012. Nonetheless, the discovery of this 770 square kilometre large oil field may be one of the most important discoveries ever, extending the oil reserves of the US by 50 percent!
Chevron Corp. is on this project with two partners, each participating with 25 percent on Jack No. 2. One is the state-run Norwegian oil company Statoil ASA (ISIN NO0010096985). The other partner is the American Devon Energy Corp. (ISIN US25179M1036) with a market cap of more than $30 billion, a heavyweight player in the oil industry.
Whether these are stocks to invest in right now with the oil price under pressure, is debatable. But certainly with an expected 2006 P/E ratio of 10 and 9 for 2007, Devon may be worth a closer look.
