Royal Dutch Shell Strikes Big In The Gulf Of Mexico (RDSA, NXY)

Royal Dutch Shell (NYSE:RDSA) has announced discovering a major oil reservoir in the eastern Gulf of Mexico. Shell made this discovery in collaboration with Canadian firm Nexen Inc. (NYSE: NXY). The reservoir is situated more than 7000 feet below water. The companies refused to disclose the estimate of the amount of reserve.

Nexen Inc. (NXY), in an announcement, said, “Well results have exceeded our pre-drill expectations”. The companies have also stated that the strike was of “excellent reservoir quality”. Shell and Nexen (NXY) own 80% and 20% respectively in the Appomattox project. The group plans to drill additional appraisal wells later in the year. David Lawrence, Executive Vice President Of Shell (RDSA), said, “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,”