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Exxon Mobil Announces Oil Finds in Gulf of Mexico
Wednesday, June 8, 4:54 PM ET

Exxon Mobil (NYSE:XOM) announced two major oil discoveries in the Gulf of Mexico today, along with a gas discovery.

The discovery was made when the company drilled it first well following the end of the moratorium on deepwater drilling in the Gulf after last yearís BP (BP) well explosion and oil spill disaster.

Exxon said its KC919-3 wildcat well, in 7,000 feet of water 250 miles off New Orleans, confirmed the presence of a second oil accumulation in Keathley Canyon block 919, including 475 feet of net oil pay and a minor amount of gas.

And, drilling earlier in the year found oil and natural gas at Hadrian North in KC919, extending into block 918, with more than 550 feet of net oil pay, the company said.

Exxon also said it discovered 200 feet of natural gas pay in Pliocene sandstone reservoirs at its Hadrian south prospect in Keathley Canyon block 964 during drilling in 2009.

Eni Petroleum and Petrobras (NYSE:PBR) America each hold 25% working interests in KC919 and KC964. Petrobras America has a 50% working interest in KC918.

Exxon Mobil shares are trading higher by over 1.4 percent on Wednesday.

The Energy Select Sector SPDR (AMEX:XLE), in which Exxon is the top holding, is trading higher by about nine tenths of a percent on Wednesday.

The iShares Dow Jones U.S. Energy Sector Index Fund (AMEX:IYE), which also counts Exxon as its top stock, is trading higher by one percent today.

The Vanguard Energy ETF (AMEX:VDE) is trading highery about one percent Wednesday, with Exxon in its top spot as well.

For MarketNewsVideo.com, Iím Kristin Bianco.

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