UPDATE 2-Chevron makes new oil discovery in Gulf of Mexico
(Adds analyst comment, rivals in area, share prices; changes dateline, previously NEW YORK)
SAN FRANCISCO Feb 5 (Reuters) - Chevron Corp (CVX.N) announced on Thursday a new deepwater oil discovery at the Buckskin prospect in a promising part of the Gulf of Mexico that is also being scoured by smaller competitors.
The block is about 190 miles (305 km) southeast of Houston and 44 miles west of Chevron's 2004 Jack discovery in the lower tertiary -- a geological formation seen as a potential source of significant new supplies in the offshore fields.
The Buckskin No. 1 discovery well encountered more than 300 feet of net pay, Chevron said. The well is located in about 6,920 feet of water and was drilled to a depth of 29,404 feet.
"This is a very significant discovery in the lower tertiary trend, where Chevron is the largest leaseholder," said George Kirkland, executive vice president for global upstream and gas at San Ramon, California-based Chevron.
Analyst Kurt Wulff of McDep Associates said generally that the lower tertiary offered a great deal of economic value "if you have any confidence that the economy is going to recover" and long-term crude prices rise back above $50 a barrel.
U.S. crude futures CLc1 were trading slightly lower on Thursday, just above $40 per barrel.
Shares of Chevron rose 1.5 percent to $72.66.
On Wednesday, Anadarko Petroleum Corp (APC.N) announced its second deepwater Gulf of Mexico discovery this week, with nearly 300 feet of net oil pay found at the Shenandoah well.
"Initial data indicates the Shenandoah discovery has reservoir properties that appear to be of much higher quality than industry has seen previously in the emerging lower-tertiary play," Bob Daniels, Anadarko's senior vice president for worldwide exploration, said in a statement.
ConocoPhillips (COP.N) owns 40 percent of Shenandoah, Cobalt International Energy holds 20 percent, Marathon Oil Corp (MRO.N) 10 percent, while Anadarko has the rest.
Also on Wednesday, Devon Energy Corp (DVN.N) President John Richels said on a conference call his company expected to begin booking lower-tertiary reserves in 2010 when its Cascade project begins producing.
Shares of Anadarko were up 4 percent at $40.96, while Devon shares were 2 percent higher at $59.24. (Reporting by Braden Reddall, with additional reporting by Steve James in New York; Editing by Gerald E. McCormick and Gunna Dickson)
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