BP Make Third Oil Discovery in Gulf of Mexico

BP America Inc. have made their third oil discovery in the area in the deep waters of the Gulf of Mexico.

The discovery at BP's Freedom Prospect is about 70 miles southeast of the Louisiana coast in about 6,100 feet of water. The well was drilled to a total depth of 29,280 feet.

BP said an appraisal will be necessary to determine the size and commerciality of the discovery.

The announcement follows discoveries by BP at its Tubular Bells and Kodiak wells.

BP Exploration & Production Inc., a subsidiary of BP America, operates the well with a 25 percent working interest. Both are owned by London-based BP PLC.

Noble Energy Inc. has a 37.5 percent working interest in the site, Samson Offshore Co. a 25 percent working interest and Marathon Oil Co. a 12.5 percent working interest.

Noble Energy and Samson Offshore acquired the lease for the site in March 2006.

BP shares fell 64 cents to $45.86 in late morning trading, while Marathon Oil declined $1.74, or 6 percent, to $29.79. Nobel Energy shares gained $4.84, or 12 percent, to $45.96.

Author: Jo Amey