We have been closely watching Exxon’s high potential Persephone well in Newfounland’s Orphan Basin. Unfortunately, Exxon has announced that the well failed to discover commercial hydrocarbons.
While exploration technology has improved significantly, the success rate for wildcat exploratory wells is still only about 30%. According to Rystad, only eight of the 27 high-impact wells drilled in 2023 resulted in commercial discoveries.
In baseball terms, the smaller independents are typically singles hitters, drilling development wells and gleaning reserves from established fields. The majors tend to be home run hitters. They swing hard and often miss, but when they hit, the rewards are great!
The search for deepwater elephants will continue.
Bud's Offshore Energy (BOE) 