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SAN RAMON, California -- Chevron Corporation has made a new oil discovery at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico. The Keathley Canyon Block 10 Well No. 1 encountered significant oil pay in the Lower Tertiary Wilcox Sands. The well is located approximately 180 miles off the Louisiana coast in 3,992 ft of water and was drilled to a depth of 30,173 ft..

"The discovery further demonstrates Chevron' s exploration capabilities," said George Kirkland, vice chairman and executive V.P., Upstream, Chevron Corporation. "Guadalupe builds on our already strong position in the deepwater U.S. Gulf of Mexico, a core focus area where we expect significant production growth over the next two years."

"The Guadalupe discovery adds momentum to our growing business in North America," said Jay Johnson, senior V.P., Upstream, Chevron Corporation. "Our deepwater exploration and appraisal program continues to unlock important resources in the Gulf of Mexico."

"Chevron subsidiaries are among the top producers and leaseholders in the Gulf of Mexico, averaging net daily production of 143,000 bbl of crude oil, 347 MMcfg, and 15,000 bbl of natural gas liquids during 2013," said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. "The company expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year."

Chevron subsidiary Chevron U.S.A., Inc. began drilling the Guadalupe well in June 2014. More tests are being conducted on the discovery well and additional appraisal wells will be needed to determine the extent of the resource.

Chevron U.S.A., Inc., with a 42.5% working interest in the prospect, is the operator of the Guadalupe discovery well. Guadalupe co-owners are BP Exploration & Production, Inc. (42.5%) and Venari Resources LLC (15%).