Ten successful wells in 2005
David Paganie, Senior Editor
The number of deepwater discoveries in greater than or equal to 1,000 ft of water in the GoM is down for the fourth straight year in a row. According to data compiled byOffshore, 10 discoveries were reported in 2005 as of December 15, down from 15 reported in 2004, 17 in 2003, 21 in 2002, and 22 in 2002.
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Meanwhile, independents continue to score the big finds in the deep waters. Of the 10 deepwater discoveries reported in 2005 - Allegheny South, Q, Mondo Northwest Extension, Jubilee Extension, Clipper, Knotty Head, Genghis Khan, Wrigley, Anduin, and Stones, seven were drilled by independents while three successes were reported by major oil and gas companies.
To keep things in perspective, it is important to mention that the number of deepwater wells drilled is down for the fourth straight year as well. According to MMS statistics, 139 wells were drilled in 1,000 ft of water or greater in 2005 as of December 15, which is down from 192 in 2004, 199 in 2003, 243 in 2002, and 277 in 2001. In addition, the hurricanes that blasted through the Gulf during the year caused operators to halt or delay drilling plans.
Spinnaker Exploration (now Hydro) announced its third discovery in the Independence Hub area with its Q find. The discovery well was drilled on Mississippi Canyon block 961 in 7,925 ft of water, approximately 100 mi southeast of Venice, La. Well tests indicated 110 ft of true vertical thickness of pay in a continuous, high-quality Miocene reservoir at a depth of 17,644 ft, according to Spinnaker.
The company plans to tieback the well to theIndependence Hub, which will be situated about 12 mi east-northeast in Mississippi Canyon block 920 in 7,920 ft of water. First production from Q is anticipated by start-up of the Hub facility, which is expected in 3Q 2007.
Spinnaker is operator of the field with a 50% working interest, and Dominion E&P holds the remaining 50%.
Murphy Oil plans to tieback a 2005 discovery to theIndependence Hub as well. The company drilled a successful well on its South Dachshund/Mondo Northwest field situated on Lloyd Ridge block 1 in approximately 8,340 ft of water. The discovery well’s sidetrack encountered over 70 ft of true vertical thickness net natural gas pay, according to Murphy.
First production from South Dachshund/Mondo Northwest is expected by start-up of theIndependence Hub in the second half of 2007.
Murphy holds a 50% working interest in the field and served as operator for the exploratory phase, and Anadarko holds the remaining 50% and will operate the development phase.
Anadarko drilled an extension on its 2003-discovered Jubilee field, and encountered 37 ft of net gas pay. The discovery well on the Jubilee extension was drilled to a total depth of 18,100 ft on Lloyd Ridge block 309. Water depth in the area is approximately 8,774 ft.
While Anadarko did not indicate development plans for the discovery, it is likely the well will be tieback to theIndependence Hub along with the adjacent Jubilee field, which has already been slated for production via the Hub platform. Anadarko is operator and 100% owner of the field.
ENI is adding to its current level of 42 Mboe/d in the Gulf with its Allegheny South exploration success. The discovery well was drilled on Green Canyon block 298 in 3,307 ft of water, approximately 162 mi south of New Orleans. The well was drilled to a total depth of 15,978 ft. ENI estimates the newly discovered reserves at 20 MMboe.
The company plans to tieback the discovery well to the nearby Allegheny field, situated approximately one mi away. ENI originally anticipated start-up from the field by the end of 2005.
ENI is100% owner and operator of the Allegheny field, including Allegheny South.
Pioneer Natural Resources, in the midst of its deepwater GoM divestiture, drilled a discovery on its Clipper prospect in Green Canyon block 299. Pioneer operates the block with a 55% working interest. The well was drilled in approximately 3,452 ft of water.
Given the well’s close proximity to ENI’s adjacent Allegheny South discovery in Green Canyon block 298 and theAlleghenyTLP in adjacent Green Canyon block 254, it appears a viable production alternative could be through tieback to the floating platform.
Nexen continues its deepwater push with the announcement of three major discoveries in 2005: Knotty Head, Wrigley, and Anduin. In addition, the company says it plans to drill five deepwater prospects in 2006.
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In late December 2005, the company confirmed that its Knotty Head discovery in Green Canyon block 512 encountered approximately 600 ft of net oil pay in multiple zones. The discovery well was drilled to a total depth of 34,189 ft, which according to the operator, is a GoM record. Shell was the previous record holder at 32,727 ft, according to the MMS.
The company says it will further study the field in 2006 with a sidetrack well and an additional stand-alone appraisal well. The company has not yet announced development plans, but based on the field’s estimated reserves and additional comments made by the company, it appears likely that the field will be developed with a stand-alone, floating production facility.
Nexen estimates the discovery’s reserves potential at 350-1,000 MMboe. During the company’s 2006 budget conference call with Thomson Financial, Marvin Romanow, Nexen EVP & CFO said in reference to the company’s upcoming projects in 2007 and 2008, “We expect we’ll have a significant development to undertake in the GoM at Knotty Head.”
The Knotty Head field is located in about 3,557 ft of water, approximately 15 mi northeast of Tahiti. Unocal (now Chevron) is operator of the exploratory phase with a 25% working interest, Nexen is operator of the block with 25% ownership, and BHP and Anadarko each hold a 25% stake in the field.
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The Nexen-operated Anduin discovery located in Mississippi Canyon block 755 in 2,365 ft of water found 48 ft of gross oil pay. The company plans to drill a sidetrack on the western side of the well in 2006 to determine the field’s resource size and development options. Nexen is operator of the field with a 50% working interest, and Newfield Exploration holds the remaining 50%.
Nexen also has an ownership stake in the successful well drilled on the Wrigley field located in Mississippi Canyon block 506. According to operator Newfield Exploration, the discovery well drilled in Mississippi Canyon block 506 in approximately 3,700 ft of water found 90 ft of gross dry gas pay.
Newfield plans to tieback the well to existing infrastructure in the area, with first production expected in mid-2006. The operator estimates the field’s reserves at 55-85 Bcfe.
Newfield owns a 50% interest in the Wrigley development, and Nexen holds the remaining 50%. Wrigley is Newfield’s first deepwater GoM operated discovery.
The Anadarko-operated Genghis Khan exploratory well located in Green Canyon block 652 was successfully logged as a discovery, encountering 110 ft of net oil pay in the lower Miocene formation. Water depth at the location is approximately 4,320 ft.
The well was drilled to a total vertical depth of 26,300 ft. The company followed up with an appraisal well, drilled to a total depth of 27,450, and encountered oil pay similar in quality to the discovery well’s results.
Anadarko plans to tieback the Genghis Khan wells to the Marco Polo platform, located less than three miles away in Green Canyon block 608. First production is expected in mid-2006. Anadarko is 100% owner and operator of the field.
Shell confirms that hydrocarbons were encountered during the drilling of its Stones prospect in 9,576 ft of water on Walker Ridge block 508. The exploratory well was drilled and temporarily abandoned in the first half of 2005. Shell adds that further drilling is necessary to determine the extent and commerciality of the discovery. The well was drilled to a true vertical depth of 28,560 ft. Shell has a 26% working interest in the field, while the operator BP holds a 59% stake, and Marathon owns the remaining 15%.•
