GULF OF MEXICO

Michael Crowden
Houston

Drilling, production units traded for stake in Allegheny project

Reading and Bates Development (RBD) has acquired a 20% working interest in the Green Canyon 254 (Allegheny) project. The seller is operator Enserch Exploration. Terms were not disclosed. Mobil has a 40% working interest in the project. Reading and Bates says it expects to supply the third-generation semisubmersibleMG Hulme Jr. for drilling the development wells and to convert the second-generation semisubmersible Rig 41 to a floating production vessel (FPV) for the field.

"The oil field has been estimated to contain recoverable reserves of 120 million BOE, so participation in the 5-7 year project could prove to be quite significant for Reading and Bates as our portion of the revenues may exceed $350 million," said Paul B Lloyd Jr, Reading and Bates chairman and chief executive. "Additionally, the working interest partners have acquired approximately 300 sq miles of leases in the immediate vicinity under an area of mutual interest agreement, and we plan to size the production train on the FPV to process additional reserves from that acreage if developed."

Deepwater royalty holiday granted

Congress has passed and the President is expected to sign into law legislation designed to boost deepwater drilling in the Gulf of Mexico by providing royalty relief. Included in the legislation is removal of the 22-year ban on exports of crude oil produced on Alaska's North Slope. The administration says it supports the measure because it bring more US production to the market.

Galveston 300 well yields 11.4 MMcf/d

Apache reported its Galveston 300-1 discovery well tested 11.4 MMcf/d of gas and 330 b/d of condensate. The producer was tested on a 28/64-in. choke with 6,990 psi flowing tubing pressure. Perforations were between 13,813 ft and 13,851 ft in the RM-5 sand. The location is 18 miles off Galveston Island. An offset well is underway. Apache (operator) and Amerada Hess each own 50% working interest in the discovery.

Pogo, Nippon drill gas discoveries

Partners Pogo Producing (operator) and Nippon Oil Exploration have drilled gas discoveries at High Island and Main Pass. The High Island A-451-1 was drilled horizontally to a vertical depth of about 2,100 ft. The well encountered 1,040 ft of horizontal pay and well tested 10.3 MMcf/d on a 51/64-inch choke. First production is scheduled for December.

The Main Pass 131 well encountered 61 ft of gas and condensate bearing sands. The well has been temporarily suspended. Plans call for installing a small platform, with production flowed to a platform at Main Pass 123. Initial production is expected in the second half of 1996.

Bastian Bay strike drilled by Vastar

Vastar Resources says it logged 102 ft of vertical pay in exploratory well South Pass 17-1 at its Bastian Bay prospect, part of the South Pass 60 unit. Perforations at the 12,990-13,322 ft depth interval yielded 17.8 MMcf/d of gas and 3,100 b/d of oil. Flowing tubing pressure was 5,905 psi on a 29/64-in. choke. A second test yielded non-commercial quantities of oil from perforations in the 14,720-14,820 ft depth interval. A delineation well is planned for 1966.

The Bastian Bay discovery was drilled in 140 ft of water from a semisubmersible in a mud-flow area off the Mississippi River. An extension well completed earlier this year is producing 1,850 b/d of oil and 1.5 MMcf/d of gas. Vastar says an additional exploration well is being drilled on the north flank of South Pass 60 from the C platform to test an amplitude anomaly similar to that found in Bastian Bay discovery. Two other exploratory wells on the north flank are planned in 1996. Proprietary 3D seismic was used to identify all the prospects. South Pass 60 currently is producing 16,000 b/d of oil and 24 MMcf/d of gas.

Forcenergy completes three SMI wildcats

Forcenergy Gas Exploration says it has successfully completed three exploration wells and one development well on its South Marsh Island 106/115 project. The wells are producing about 2,000 b/d of oil and 5 MMcf/d of gas. Estimated reserves on the prospect are 1.8 million bbl of oil and 4.7 Bcf of gas. The latest exploratory well, A-5 ST, encountered 55 ft of pay. Currently the well is producing a on a long-term test at 1,000 b/d of oil and 400 Mcf/d of gas. Two additional exploratory wells are being drilled.

Meantime, Forcenergy says it development program is proceeding on schedule at its South Pass 24 field. Eight development wells have been drilled and will be placed in production before year end.

Horizontal wells boost Apache gas output

Apache has gained added gas production from two recently completed horizontal wells in the South Timbalier 166 D-3 test. The well tested 14 MMcf/d of gas on a 1-in. choke, with 775 psi of flowing tubing pressure. The South Timbalier 144 D-1 test flowed three MMcf/d on a 44/64-in. choke with 460 psi of flowing tubing pressure. Both wells were completed in the 3,500-ft Pleistocene sand. Initial production will begin early next month from existing facilities.

Allseas wins more pipelay contracts

In additional to winning contracts to lay the deepwater Ram-Powell and Mensa pipelines, Allseas has won another pipelay job. The contractor is to lay two lines for Santana Gathering Company as part of the Main Pass gathering system. One is a 48-km, 20-in. line from Main Pass 164 to Main Pass 225, and the second a nine-km, 12-in. line from Main Pass 225 to Main Pass 223. Pipelay will be performed by the layship Lorelay after it has completed work on British Gas's Dolphin field off Trinidad.