Thursday, December 16, 2010

ExxonMobil (NYSE:XOM) Finds Oil in Brazil Hot Spot

Concerns arose after Exxon Mobil's (NYSE:XOM) first attempt to find oil in waters off the coast of Brazil resulted in a dry well.

That has changed now as the has found oil in the BM-S-22 block in Santos Basin, according to Brazilian energy regulator ANP. The oil was found at the 3-ESSO5-SPS well, which is located at the BM-S-22 block. This is a region with has an estimated 50 billion barrels of crude oil in it.

When Exxon failed in its first attempt in the block in 2009, it generated concerns it was riskier than anticipated in the region. Ongoing discoveries from competitors in the area has alleviated much of those concerns, as it appears it's only a matter of finding the oil, not if it's there or not.

Exxon works with partners Hess and Petrobras in the block.

Petrobras was trading at $33.25, down $0.08, or 0.24 percent, as of 2:44 PM EST. Exxon was at $72.27, up $0.42, or 0.58 percent. Hess was trading at $73.83, up $0.72, or 0.98 percent, as of 2:45 PM EST.

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