Chevron Corporation (NYSE:CVX) announced on Thursday, Oct. 23, a new oil discovery at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico.

The Keathley Canyon Block 10 Well No. 1 encountered significant oil pay in the Lower Tertiary Wilcox Sands. The well, located approximately 180 miles off the Louisiana coast in 3,992 feet of water, was drilled to a depth of 30,173 feet.

The Guadalupe well was drilled by Transocean’s Discoverer India deepwater drillship.

Chevron U.S.A. began drilling the Guadalupe well in June 2014. More tests are being conducted on the discovery well, and additional appraisal wells will be needed to determine the extent of the resource.

Chevron has a 42.5 percent working interest in the prospect and is the operator of the Guadalupe discovery well. Guadalupe co-owners are BP Exploration & Production, Inc. (42.5 percent) and Venari Resources LLC (15 percent).

Jeff Shellebarger, president of Chevron North America Exploration and Production Company, said “The company expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year.”

Chevron’s holdings in the Gulf averaged net daily production of 143,000 barrels of crude oil, 347 million cubic feet of natural gas, and 15,000 barrels of natural gas liquids during 2013.