Repsol claim biggest US oil discovery in 30 years

Repsol claim biggest US oil discovery in 30 years

Spanish energy company Repsol (BMAD:REP) has announced an oil reserve of 1.2 billion barrels has been discovered in Alaska, which the firm believes is the largest onshore find in the US in three decades.

In a company statement Repsol said the resource could provide production levels of 120,000 barrels per day starting from 2021.

The huge collection of recoverable light oil was found near the village of Nuiqsut in Alaska’s North Slope, in conjunction with the firm’s partner, Denver-based Armstrong Energy.

The company statement said: “The successive campaigns in the area have added significant new potential to what was previously viewed as a mature basin.

“Additionally, Alaska has significant infrastructure which allows new resources to be developed more efficiently.”

The discovery was made at the wells named Horseshoe-1 and 1A during the recent 2016-17 winter drilling campaign.

Repsol has been involved in exploration activity across Alaska since 2008, and has drilled multiple consecutive discoveries on the North Slope since 2011.

Repsol holds a 25% working interest in the Horseshoe discovery, with Armstrong holding the remaining working interest.