Market Overview

ExxonMobil Adds Ninth Discovery Offshore Guyana

  • Hammerhead-1 well encounters 197 feet of high-quality, oil-bearing
  • Discovery adds to estimated resource of more than 4 billion barrels
  • Maximum offshore value creation through rapid development and
    accelerated exploration

(NYSE:XOM) has made its ninth discovery offshore Guyana at the
Hammerhead-1 well, marking its fifth discovery on the Stabroek Block in
the past year and proving a new play concept for potential development.

Hammerhead-1 encountered approximately 197 feet (60 meters) of
high-quality, oil-bearing sandstone reservoir. The well was safely
drilled to 13,862 feet (4,225 meters) depth in 3,373 feet (1,150 meters)
of water. The Stena Carron drillship began drilling on July 27, 2018.

"The Hammerhead-1 discovery reinforces the potential of the Guyana
basin, where ExxonMobil is already maximizing value for all stakeholders
through rapid phased developments and accelerated exploration plans,"
said Steve Greenlee, president of ExxonMobil Exploration Company.
"Development options for Hammerhead will take into account ongoing
evaluation of reservoir data, including a well test."

Hammerhead-1 is located approximately 13 miles (21 kilometers) southwest
of the Liza-1 well and follows previous discoveries on the Stabroek
Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and
Longtail. Those previous discoveries led to the announcement of an
estimated recoverable resource of more than 4 billion oil-equivalent
barrels discovered to date, and the potential for up to five floating
production, storage and offloading (FPSO) vessels producing more than
750,000 barrels per day by 2025.

There is potential for additional production from significant undrilled
targets and plans for rapid exploration and appraisal drilling. A second
exploration vessel, the Noble Tom Madden, is due to arrive in
Guyana in October to accelerate exploration of high potential
opportunities and will commence drilling at the Pluma prospect
approximately 17 miles (27 kilometers) from Turbot.

Liza Phase 1, which is expected to begin producing oil by early 2020,
will use the Liza Destiny FPSO vessel to produce up to 120,000 barrels
of oil per day. Construction of the FPSO and subsea equipment is well
advanced. Pending government and regulatory approvals, Phase 2 is
targeted for sanctioning by the end of this year. It will use a second
FPSO designed to produce up to 220,000 barrels per day and is expected
to be producing in 2022. A third development, Payara, will target
sanctioning in 2019 and use an FPSO designed to produce approximately
180,000 barrels of oil per day as early as 2023.

The Stabroek Block is 6.6 million acres (26,800 square kilometers).
ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is
operator and holds 45 percent interest in the Stabroek Block. Hess
Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen
Petroleum Guyana Limited holds 25 percent interest.

About ExxonMobil

ExxonMobil, the largest publicly traded international energy company,
uses technology and innovation to help meet the world's growing energy
needs. ExxonMobil holds an industry-leading inventory of resources, is
one of the largest refiners and marketers of petroleum products, and its
chemical company is one of the largest in the world. For more
information, visit
or follow us on Twitter

Cautionary Statement: Statements of future
events or conditions in this release are forward-looking statements.
Actual future results, including project plans and schedules, resource
recoveries and production rates could differ materially due to changes
in market conditions affecting the oil and gas industry or long-term oil
and gas price levels; political or regulatory developments; reservoir
performance; the outcome of future exploration and development efforts;
technical or operating factors; the outcome of future commercial
negotiations; and other factors cited under the caption "Factors
Affecting Future Results" on the Investors page of our website at
References to barrels of oil and similar terms include quantities that
are not yet classified as proved reserves under SEC rules but that we
believe will be produced in the future and moved into the proved reserve

View Comments and Join the Discussion!