Chevron announces oil discovery in Gulf

By The Associated Press

NEW ORLEANS (AP) — Chevron Corp. has announced an oil discovery in the deepwater regions of the Gulf of Mexico.

Chevron said Tuesday that an exploratory well at Keathley Canyon found more than 380 feet of oil reserves. The well is located about 216 miles off the Louisiana coast. The well is in just over 6,700 feet of water and has been drilled to a depth of 31,545 feet.

Chevron began drilling the well at the site — known as the Moccasin prospect — in March 2010, but stopped three months later because of the deepwater drilling moratorium imposed after the BP oil spill. Drilling resumed in March.

Chevron said it is evaluating the results and more work will be needed to determine the extent of the discovery.