Chevron: "No success" at 2nd well off Newfoundland

Wed Feb 8, 2012 2:38pm EST

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Feb 8 (Reuters) - Chevron Corp, the second-largest U.S. oil company, plans to drill a third well at the Orphan Basin off the east coast of Canada despite its lack of success there so far, Chevron's head of exploration said on Wednesday.

The first well found no oil, and the results of the second had not previously been made public.

"We've drilled two, with no success," Bobby Ryan, the company's vice president for global exploration, said at the Credit Suisse Energy Summit in Colorado. "But we've learned a lot geologically and it's pointing us in a direction that we hope will be the right answer moving forward."

Chevron said last month that Repsol YPF SA and Statoil ASA would fund part of the cost of the third well off Newfoundland, after its partners in the two prior efforts -- Exxon Mobil Corp, Royal Dutch Shell and Imperial Oil Ltd -- pulled out.

Ryan also gave an update on Chevron's work in the Pearl River Mouth Basin off China, where the first deepwater well ended up a dry hole. The company is drilling a second in a nearby block, with one well planned for each of its three blocks there that span more than 5 million acres (2 million hectares).

Off the coast of Liberia, Chevron expects to start the first of two wells planned for this year by the end of this quarter, Ryan said. Also by the end of March, he hopes the company will have completed two wells in the onshore Duvernay shale in Alberta, with "multiple" wells planned after that in 2012.

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