Chevron Announces Major Gulf Find

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Chevron, the second-largest U.S. oil company, said today the Moccasin prospect at Keathley Canyon Block 736 Well No. 1 encountered more than 380 feet of net pay in the Lower Tertiary Wilcox Sands. The well is located approximately 216 miles off the Louisiana coast in 6,759 feet of water and was drilled to a depth of 31,545 feet, Chevron said in a statement.

California-based Chevron (CVX) started the project in March 2010, but was forced to delay it in June 2010 after the federal government imposed a moratorium on deep-water drilling following the Gulf of Mexico oil spill, the largest oil spill in U.S. history. Chevron was allowed to resume drilling Moccasin in March.

Oddly enough, BP (BP), the company seen as the primary villain behind the Gulf spill, owns an interest in Moccasin. In fact, Europe's second-largest oil company holds a 43.75% stake in the project, the same as Chevron.

Dow component Chevron is one of the largest leaseholders in the Gulf and is currently developing the $7.5 billion Jack/St. Malo and the $4.1 billion Big Foot projects, the company said in its statement.