Exxon sees up to 1B barrels in Brazil oil prospect, partner Murphy Oil says (NYSE:XOM)

Exxon Mobil (XOM +0.5%) is drilling in a brand new space offshore Brazil that might have as a lot as 1B barrels of oil and fuel, in line with accomplice Murphy Oil (MUR +1%).

The so-called Cutthroat space has an upward gross useful resource potential of 500M-1B boe, Murphy Oil (NYSE:MUR) CEO Roger Jenkins stated in an investor presentation, including that Exxon began drilling exercise on the Cutthroat-1 prospect a month in the past and may conclude within the coming weeks.

If exploration is profitable, the prospect within the Sergipe-Alagoas Basin could be Exxon’s (NYSE:XOM) first oil discovery in Brazil as an operator; the corporate owns a 50% stake, with Brazilian producer Enauta holding 30% and Murphy sustaining 20%.

Exxon probably will “blow Q1 estimates out of the water, which may result in a bigger than anticipated dividend improve in June,” Graham Grieder writes in a bullish evaluation newly revealed on In search of Alpha.