ExxonMobil (XOM) announced that it has discovered oil at Longtail-3 in the Stabroek Block off the coast of Guyana. Shares of the American multinational oil and gas corporation have jumped 23.7% over the past year. The well is located approximately two miles south of the original Longtail-1 well.
The Stabroek Block is spread across 6.6 million acres and is operated and co-owned by ExxonMobil affiliate Esso Exploration and Production Guyana Limited. (See XOM stock analysis on TipRanks)
Senior vice-president of exploration and new ventures at ExxonMobil, Mike Cousins, said, “Longtail-3, combined with our recent discovery at Uaru-2, has the potential to increase our resource estimate within the Stabroek block, demonstrating further growth of this world-class resource and our high-potential development opportunities.”
He added, “We will continue to leverage our core competitive advantages in our ongoing exploration campaign, delivering substantial value to the Guyanese people, our partners and shareholders.”
Barclays analyst Jeanine Wai recently increased the price target on the stock from $65 to $70 (11.7% upside potential) and reiterated a Buy rating.
Wai expects a macro recovery based on current oil and inventory trends and thinks OPEC+ countries will continue to help a difficult oil market.
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys, 6 Holds, and 1 Sell. The XOM average analyst price target of $67.71 implies 8.1% upside potential from current levels.