Exxon 1 Billion Julia Discovery

[Matt_C]

May be old news but I just read that Exxon has discovered a potential 1 billion barrel oil field in the Gulf of Mexico named "Julia" field. They may not get to develop it because they didn't file an extension for lease or something like that. Don't want to start a political thread just folks thoughts on rather Exxon should be allowed to develop the field or lease sold to another company?

[dcbrown]

I would think that since they discovered the field, their lease should be extyended to allow them to develop it. Would not be right to do otherwise.

[Chaindiggity]

Other than the following statement, I'll keep my mouth shut on this topic:
"I hope gas prices go down."

[1369]

If the lease expired and the extension wasn't filed, that's the breaks. The lease should go back on the market. Can you imagine the uproar that would be caused if this happened to a private mineral holder in the Eagle Ford? Plus, if the gov't auctions off the lease, couldn't the make even more money off the royalties thus helping our national debt? Or goes federal land not work that way?

[Throwin Darts]

If the lease expired and the extension wasn't filed, that's the breaks. The lease should go back on the market. Can you imagine the uproar that would be caused if this happened to a private mineral holder in the Eagle Ford? Plus, if the gov't auctions off the lease, couldn't the make even more money off the royalties thus helping our national debt? Or goes federal land not work that way?

x2. Auction it off to the highest bidder. If Exxon's lease expired, tough. They can put in their offer along with everyone else.

[Dejashoot]

You think they let this lapse on accident? 1 billion barrels is a lot even to Exxon. Makes me wonder if it is impossible to get out of the ground at a profit or current regulations make it imposible to drill.

[Matt_C]

Exxon has a history of taking a long time to act on leases.... meaning they leave no stone unturned in analyzing all possible benefits and costs on an oil lease before deciding to develop it.

[flywise]

If the lease expired and the extension wasn't filed, that's the breaks. The lease should go back on the market. Can you imagine the uproar that would be caused if this happened to a private mineral holder in the Eagle Ford? Plus, if the gov't auctions off the lease, couldn't the make even more money off the royalties thus helping our national debt? Or goes federal land not work that way?

They would not even think about putting this or any other money towards debt.

[Landrover]

Loss paperwork is non excuse for u & me! Auction and move on to getting oil safely to the pumps! I don't think my part of the Gulf can take another monsterous leak like last year. Glad there is oil out there though!!!

[asttbe]

Exxon filed for an extension on time. The government denied it which is unheard of. Saying they didn't include a specific plan to produce it. Exxon and Statoil are suing the .gov over this

I will leave the politics out of this, people can research it pretty easy

[John Paul]

From what I understand on most if not all oil leases the only way to "extend" the lease without paying for it is to have continuing production. Meaning they have to have at least one producing well for that Unit to not loose the lease or renegotiate lease terms. You can find all the oil you want, that's what you paid for, to take a look, but if you don't produce you have to give the owner of said property ample opportunity to re-lease with a company that will produce.

[1369]

Exxon filed for an extension on time. The government denied it which is unheard of. Saying they didn't include a specific plan to produce it. Exxon and Statoil are suing the .gov over this

I will leave the politics out of this, people can research it pretty easy

The more you know.

Hadn't heard of this until now. If they get to produce it, Statoil is looking pretty good with the big strike/discovery they recently got in the North Sea.

[Tejas Wildlife]

http://www.theaustralian.com.au/business/companies/billions-at-stake-as-exxon-fights-for-lease-on-gulf-of-mexicos-julia-field/story-fn91v9q3-1226117513708

This article explains it pretty well. Well discovered in Jan 08, Exxon applied for extension (which had NEVER been denied by goverment before) in Oct 08, Lease due to formally expire in Nov 08.

Read the part about the taxes due to the US over the expected lifetime of the well: almost 11 BILLION DOLLARS!!! I have worked on the BP Thunderhorse field & it is a money making location for everyone involved. Sure is nice to know that another field just like it exists in the Gulf!

[texag93]

I hope we get the chemical business from whoever gets the lease.

[Tejas Wildlife]

http://www.rigzone.com/news/article.asp?a_id=110309&hmpn=1

Another article worth reading on this discovery.