Exxon Mobil shares fall for a tenth straight session on Tuesday, Guyana recoverable resources bolstered to over 8 billion oil-equivalent barrels, oil major says

Exxon Mobil Corp (XOM) said earlier this week that it had boosted its estimated recoverable resources in Guyana to over 8 billion oil-equivalent barrels. The company also discovered more oil northeast of the Liza field, at the Uaru exploration well. This has been Exxon’s 16th discovery on the Stabroek Block.

Exxon Mobil shares closed lower for a tenth consecutive trading session in New York on Tuesday. The stock edged down 0.14% ($0.09) to $64.65. The latter also was the intraday low and a price level not seen since December 26th 2018 ($64.65).

Shares of Exxon Mobil Corporation have retreated 7.35% so far in 2020 compared with a 1.41% gain for the benchmark index, S&P 500 (SPX).

In 2019, Exxon Mobil Corp’s stock went up 2.33%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

The Stabroek Block is an area of 6.6 million acres or 26 800 square kilometers. Esso Exploration & Production Guyana Limited, an Exxon Mobil affiliate, operates and has a 45% stake in the Stabroek Block. Hess Guyana Exploration Limited has a 30% stake, while CNOOC Petroleum Guyana Limited – 25%.

At Uaru, Exxon discovered nearly 94 feet or 29 meters of high-quality oil-bearing sandstone reservoir. Drilled in 6 342 feet or 1 933 meters of water, the well is situated nearly 10 miles northeast of the Liza field, where oil production was initiated in December.

Exxon said that production from the Liza Phase 1 development was currently being increased and was expected to produce up to 120 000 barrels of oil on a daily basis during the upcoming months.

“With recent high-quality finds at Tripletail and Mako contributing to our recoverable resources, our investments will continue to provide benefits for the people of Guyana,” Mike Cousins, senior vice president of exploration and new ventures at Exxon Mobil, said in a statement.

“The Uaru discovery is another positive step as we begin a new decade with the Co-operative Republic of Guyana and our co-venturers,” Cousins added.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $74.50, with a high estimate of $100.00 and a low estimate of $67.00. The median estimate represents a 15.24% upside compared to the closing price of $64.65 on January 28th.

The same media also reported that at least 17 out of 24 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.