Occidental Petroleum shares rose 1.8% on Thursday after the company announced an oil discovery at the Bandit prospect in the Gulf of America and as crude prices moved higher.
The discovery was reported at the Bandit prospect, situated roughly 125 miles south of the Louisiana coastline. The exploration well in Green Canyon Block 680 encountered oil-bearing Miocene sands, the company said.
Occidental is the operator on the project with a 45.375% working interest. Chevron U.S.A. Inc. holds a 37.125% stake, and Woodside Energy owns the remaining 17.5%. The partners are currently evaluating the well results to determine appropriate next steps.
The company noted that the find could be suitable for subsea tie-backs to an adjacent Occidental-operated facility and to other nearby installations, offering potential development pathways if further evaluation supports them.
"We believe this discovery demonstrates the continued importance of the Gulf of America as a strategic source of reliable domestic oil supply that supports long-term energy security," said Jeff Simmons, Senior Vice President, Subsurface Technology and Chief Petrotechnical Officer.
Occidental did not disclose the size of the discovery or provide a timetable for possible development of the find.
Market context for the move included a 3% rise in oil prices on Thursday, which the company and market participants attributed to concerns surrounding a fragile two-week ceasefire in the Middle East and the resulting questions about energy flows through the Strait of Hormuz.
Investors responded to the combination of the exploration update and firmer crude markets, resulting in the modest uptick in Occidental shares on the trading day.
Sectors impacted: Energy producers, oilfield services and broader commodity markets that track crude price movements.