Cyprus Confirms Massive Natural Gas Find as ExxonMobil Drills 350-Meter Column in Pegasus-1 Well
Eastern Mediterranean energy ambitions reignited with blockbuster offshore discovery
Off the southwestern coast of Cyprus, a game-changing discovery is making waves in the energy world. The Pegasus‑1 well, drilled by a consortium led by ExxonMobil (ticker XOM, listed on the NYSE), has struck a massive 350‑meter column of high-purity natural gas at a depth of 1.9 kilometers. On July 7, 2025, the Cypriot government publicly confirmed the find, marking it as a milestone in Block 10’s offshore energy development.
The Pegasus‑1 results add momentum to previous successful drillings in the same block, notably Glaucus‑1 in 2019 and Glaucus‑2 in 2022. But Pegasus‑1 stands out with its longer and potentially richer gas-bearing formation, nearly tripling the 133 meters reported in Glaucus‑1. The discovery was made using the Valaris DS‑9 rig, situated about 190 kilometers offshore in deepwater territory 1,921 meters below the surface.
Early industry feedback has been cautiously optimistic. The quality and extent of the gas column suggest commercial potential, though further studies are needed to confirm reservoir porosity, extent, and recoverability. Experts indicate that volumetric estimates may vary as seismic and well data undergo deeper analysis.
ExxonMobil, working alongside QatarEnergy, will now enter an evaluation phase to determine the economic feasibility of extraction and export. This is a critical period for Cyprus, which holds untapped offshore reserves like Aphrodite in Block 12 and Kronos in Block 6 but has yet to enter full production or export phases. The country has recently signed deals aimed at channeling its future gas output through Egypt’s liquefaction facilities in Idku and Damietta for re-export to Europe and beyond.
The strategic location of Pegasus‑1 within Block 10 strengthens Cyprus’s position in the evolving Eastern Mediterranean energy puzzle. If deemed viable, options for development include subsea pipelines or floating LNG units (FLNG), which offer flexibility and avoid costly onshore infrastructure.
The discovery follows mixed exploration outcomes. While Pegasus‑1 shows promise, earlier efforts like the Elektra‑1 well in Block 5 failed to yield commercially viable volumes, prompting a redirection of focus toward more promising zones. The breakthrough at Pegasus‑1 reaffirms the geological potential of Block 10 and sets a strong precedent for future investment.
This new development comes at a time when energy geopolitics are evolving rapidly. With Europe looking to diversify its gas supplies and reduce dependency on Russian exports, Eastern Mediterranean finds like this become strategically important. Cyprus now stands at the threshold of becoming a key regional energy player, with ExxonMobil and its partners potentially leading the next chapter of offshore gas production in the region.