Hess Corporation today reported a net loss of US$73 million, or US$0.24 per common share, in the second quarter of 2021, compared with a net loss of US$320 million, or us$1.05 per common share, in the second quarter of 2020.
On an adjusted basis, it said net income in the second quarter of 2021 was US$74 million, or US$0.24 per common share. The oil exploration and production company with a 30 percent stake in the Stabroek Block said this improvement in adjusted after-tax results compared with the prior-year period primarily reflects higher realized selling prices in the second quarter of 2021.
Turning its attention to the Stabroek Block, it noted that the operator, Esso Exploration and Production Guyana Limited, announced a significant new oil discovery at Whiptail today. It noted that the Whiptail-1 well encountered 246 feet (75 meters) of net pay in high-quality oil-bearing sandstone reservoirs. It said too that drilling is ongoing at the Whiptail-2 well, which is located 3 miles northeast of Whiptail-1 and has encountered 167 feet (51 meters) of net pay in high-quality oil bearing sandstone reservoirs.
It further noted that drilling continues at both wells to test deeper targets, and results will be evaluated for future development.
It should be noted that the Whiptail discovery is located approximately 4 miles southeast of the Uaru-1 discovery that was announced in January 2020 and approximately 3 miles west of the Yellowtail Field.
Concerning the Corporation’s net production from the Liza Field, it said this was 26,000 bopd (barrels of oil per day) in the second quarter of 2021 compared with 22,000 bopd in the prior-year quarter.
It was keen to note that startup of Phase 2 of the Liza Field development, which will utilize the Liza Unity floating production, storage, and offloading vessel (FPSO) with an expected capacity of 220,000 gross bopd, remains on track for early 2022 while adding that the third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd. First oil is expected in 2024.
A fourth development, Yellowtail, has been identified on the Stabroek Block with an anticipated startup in 2025, pending government approvals and project sanctioning.
