The Rising Influence of Rising Affluence

[DewDiligence]

Hess Announces Successful Libya Well Test

[Libya has historically been known for its onshore oil and gas assets; comparatively speaking, Libya’s offshore programs are still in their infancy (#msg-39170645).]

http://finance.yahoo.com/news/Hess-Announces-Successful-bw-3499791155.html?x=0&.v=1

›10:35 am EST, Wednesday December 2, 2009

NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) announced today that its fully-owned subsidiary Hess Libya Exploration Limited (HLEL) has carried out a successful test of its discovery well A1-54/01 offshore Libya in the Mediterranean Sea.

Well A1-54/01 was originally drilled in the Arous Al-Bahar prospect in 2008 and encountered hydrocarbons in several intervals with a combined gross section of approximately 500 feet. Hess recently reentered and perforated the well over a 300 foot carbonate interval and performed a drill stem test. The well flowed at a rate of 27 million standard cubic feet of good quality natural gas per day and 533 barrels of condensate per day on a 52/64 inch choke. [I don’t know enough about these kinds of technical details to appreciate whether this flow rate is as impressive as the PR implies—comments welcome!] The test was performed using the sixth generation dynamically positioned Stena Forth drill ship.

Upon conclusion of operations on this well, the Stena Forth will return to complete the drilling of an appraisal well, A2-54/01, which is located approximately 7 miles northwest of the discovery well.

Well A1-54/01 was drilled in 2,807 feet of water in Area 54, which is 35 miles offshore in the Sirte Basin. HLEL holds a 100 percent working interest in Area 54, which it operates under an exploration and production sharing agreement (EPSA) with Libya’s National Oil Corporation.

Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. More information on Hess Corporation is available at www.hess.com.‹