The Royal Dutch Shell announced a significant new oil discovery in the deepwater eastern Gulf of Mexico, located at the Appomattox prospect in 2,200 meters of water in Mississippi Canyon blocks 391 and 392.

Shell drilled the discovery well, located on Mississippi Canyon block 392, to a depth of 7,643 meters and encountered approximately 162 meters of oil pay. Shell then drilled an appraisal sidetrack to 7,910 meters and encountered approximately 116 meters of oil pay. Additional appraisal activities are planned for later in the year.
“This discovery builds on a successful 2009 exploration program in the Gulf of Mexico, where Shell had discoveries at West Boreas, Vito and Cardamom Deep. Shell has the technology, the expertise and a skilled, motivated workforce to expand oil and natural gas production in the US and worldwide,” said David Lawrence, Executive Vice President of Exploration.

Shell operates and holds an 80% working interest of the permit, and Nexen holds the remaining 20%. Shell made its first discovery in the deepwater eastern Gulf of Mexico in 2003 with the Shiloh discovery (Shell 80%, Nexen 20%). A second discovery followed in 2007 at Vicksburg (Shell 75%, Nexen 25%), located about ten kilometers east of Appomattox.