GULF OF MEXICO

Jan. 1, 2010
An exploration well in Green Canyon block 490 has hit oil and gas pay, according Helix ESG subsidiary Energy Resource Technology GOM (ERT).

David Paganie • Houston

ERT makes deepwater discovery

An exploration well in Green Canyon block 490 has hit oil and gas pay, according Helix ESG subsidiary Energy Resource Technology GOM (ERT).

The Jake discovery, drilled by Diamond’sOcean America to TD of 13,504 ft (4,116 m) in 3,740 ft (1,139 m) of water, encountered 134 ft (41 m) of net oil and gas pay in a single sand interval. The well was wireline logged conventionally with multiple fluid samples recovered to confirm the hydrocarbon-bearing zone.

The well has been cased and temporarily abandoned for future subsea completion. Development options include a potential joint project with a recent nearby discovery. First production is anticipated in mid-2011.

Jake is estimated to hold between 50 to 75 bcfe gross. ERT has a 25% working interest in both the discovery well and lease. Mariner Energy is the operator.

ERT also made a discovery at its 75% owned and operated South Timbalier 145 field. This new discovery was drilled to a depth of 14,193 ft (4,326 m) TVD and logged approximately 20 ft (6 m) of oil and gas pay. First production was expected by the end of 2009.

Shell, Oceaneering set subsea well intervention record

Shell and Oceaneering International have set a new industry record in subsea well intervention by replacing a failed subsurface-controlled subsurface safety valve in the GoM using an openwater wireline technique in 2,673 ft (815 m) of water. Until now, openwater wireline has only been deployed in shallower waters, predominantly in the North Sea, the companies say.

Oceaneering International provided the vessel and services for the operation. The company’s subsea intervention lubricator system (SILS) was used. Launched from the multiservice vesselOlympic Intervention IV, the system is designed to perform wireline-based subsea well interventions without a drilling rig or large multiservice vessel and workover riser. Shell says its next focus area is deepwater coiled tubing deployment.

Anadarko hits on Lucius

The Lucius exploration well in Keathley Canyon block 875 has hit pay, according to operator Anadarko. The well encountered more than 200 ft (61 m) of net pay in subsalt Pliocene and Miocene sands. The discovery is a three-way structure against salt and results indicate thick reservoir sands with very good porosity and permeability, the company says.

Plans are to drill an up-dip sidetrack appraisal well, approximately 3,200 ft (975 m) south of the discovery, to delineate the reservoir’s extent. The discovery well’s proximity to theRed Hawk cell spar enhances potential development options and offers the opportunity to accelerate production, Anadarko says. The new semisubmersible rig Ensco 8500 drilled the well to a total depth of about 20,000 ft (6,096 m) in approximately 7,100 ft (2,164 m) of water.

Meanwhile,Ensco 8501, Ensco’s second of seven in the Ensco 8500 Series, is drilling the Knotty Head appraisal well in Green Canyon block 512. Operator Nexen expects results in 2Q 2010. A second deepwater rig, Ensco 8502, is expected to arrive in mid-2010 for Nexen. The company plans to use both rigs to drill up to four GoM exploration wells in 2010. Prospects include Kakuna, Angel Fire, Solitude, and non-operated Catalina.

Gulf operators enjoy mild hurricane season

The 2009 Atlantic hurricane season officially has ended, marking the close of a season with the fewest named storms and hurricanes since 1997, due in part, to El Niño, according to the National Oceanic and Atmospheric Administration (NOAA). El Niño produced strong wind shear across the Caribbean Sea and western tropical Atlantic, which resulted in fewer and shorter-lived storms compared to some recent seasons, NOAA says.

Nine named storms formed this year, including three hurricanes, two of which were major hurricanes at Category 3 strength or higher.

Two systems, Claudette and Ida, brought tropical storm force winds to the US mainland.

For the first time in three years, no hurricanes hit the US. Only one storm in the GoM reached hurricane status, Ida, clocking Category 2 force winds as it entered the Gulf. But it lost considerable strength as it reached the central region. MMS says no hurricane force winds from Ida reached federal OCS facilities. Also, at press time, no damage to GoM infrastructure from Ida had been reported to MMS.

NOAA says El Niño is expected to reach peak strength this winter, and is likely to continue into the spring.

Lease Sale 210 bid winners

MMS has accepted high bids valued at $111,385,124 and awarded 155 leases to the successful high bidders who participated in Western Gulf of Mexico Oil and Gas Lease Sale 210 held on Aug. 19, 2009.

Twenty-seven companies submitted 189 bids on 162 tracts. The total for high bids submitted on all tracts was $115,466,321. Using the two-phase bid evaluation process, MMS rejected high bids totaling $4,081,197 on seven tracts as being insufficient for fair market value.

The highest bid accepted on a tract was $28,133,843 for Keathley Canyon block 96 submitted by BP. This tract is in 4,934 ft (1,504 m) water depth and received three bids.

The next MMS lease sale, 213, is for the Central Planning Area. It will be held on March 17, 2010.

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