Thanks for the latest on CVX's Jack & St. Malo discoveries in the Deep Gulf. The project sounds very interesting to say the least. A question if I may... How large are the discoveries? Has CVX verified the find? Have volumetric, quantity and quality analysis been completed? Apparently they have to commit to such a large engineering and development budget. In conjunction with the development of the deep gulf discoveries, is CVX developing any “on shore” unloading, loading and transfer facilities? I understand that there is some expansion activity in the South Texas coast area, specifically in the Port Author area? Any information that you have on verified size, quality and scope of the two finds and associated expansion efforts would be appreciated by all loyal CVX investors. Go Chevron!
The problem with the Jack and St. Malo discoveries isn't with the reserves in place - those numbers are indeed very large. The problem is with the continuity of the reservoirs which leads to the question of how much oil an individual production well would produce. That drives the economics and is still a bit uncertain since the wells will be extremely expensive.