Exxon Mobil said it made what it described as a significant oil discovery in the deep waters about 120 miles off the coast of Guyana in the Caribbean.

The company ran through a 295-foot column of oil reserves while drilling an exploration well in the Stabroek reserve area about 120 miles of the Guyana coast in 5,719 feet of water,

"I am encouraged by the results of the first well on the Stabroek block," Stephen M. Greenlee, president of Exxon Mobil Exploration Co., said in a statement. "Over the coming months we will work to determine the commercial viability of the discovered resource, as well as evaluate other resource potential on the block."

A report from the U.S. Geological Survey said Guyana offshore exploration is emerging as a potentially vibrant sector in the region. Local media, the Guyana Chronicle, in its report on the U.S. oil company's discovery said the region is one of the most attractive near-frontier prospects in the world. Government officials, it reported, have started preparations to build an oil- and gas-based economy.

Exxon's discovery announcement followed Guyana elections May 11. The U.S. State Department described the voting as fair.

"We look forward to working with newly-elected President David Granger and all those who were also elected to office," the State Department said. "We also look forward to supporting President Granger's efforts to promote inclusive governance and national development."