Shell, Nexen announce significant joint oil discovery

Royal Dutch Shell and Canadian energy giant Nexen said Friday they had made a significant oil discovery under 7,217 meters of water in the Gulf of Mexico.

The drilling in the Appomattox project is the third joint discovery between the two companies in the area following two others in the Mississippi Canyon also named for American Civil War encounters, Vicksburg and Shiloh.

The companies did not estimate the size of the reserves except to call the discovery "significant" and to say "well results have exceeded our pre-drill expectations.” The discovery is close to 5 miles deep. A vertical depth of 7,217 meters is 25,077 feet of depth.

Shell operates and holds an 80% working interest in the prospect, with partner Nexen holding the remaining 20%.

Shell made an initial discovery in the deepwater eastern Gulf of Mexico in 2003 with the Shiloh discovery (Shell 80%, Nexen 20%). A second discovery followed in 2007 at Vicksburg (Shell 75%, Nexen 25%), located about ten kilometers (six miles) east of Appomattox.