BHP Billiton has confirmed the presence of hydrocarbons in a previously unexplored northern part of the structure with its Atlantis-6 appraisal well GC 743-5 in the Atwater Foldbelt, 125 mi south of New Orleans in Green Canyon block 743. Additional drilling will be necessary to further appraise this portion of the field and assess the impact on overall reserves. Before drilling of Atlantis-6, the company's estimated gross proven and probable reserves at Atlantis were 635 MMbbl.
The well encountered hydrocarbons in several zones, including 605 ft of gross oil pay, 460 ft of net oil pay, 360 ft of gross gas pay, and 200 ft of net gas pay.
BHP Billiton has a 44% working interest both in the Atlantis-6 well and the Atlantis field. BP is the operator with a 56% interest in the well and development project. The BP-operated rig Deepwater Horizon drilled Atlantis-6 in 5,405 ft of water to 20,131 ft TD.
President and CEO of BHP Billiton Petroleum Philip Aiken remarked:
BHP Billiton also approved $1.1 billion for the development of the Atlantis oil and gas reserves in the Gulf of Mexico. This includes $355 million the company approved in May 2002 to advance the project by funding detailed engineering and design work, purchasing of long-lead items, and awarding major contracts.
This completes BHP Billiton's investment commitment that will be necessary to bring Atlantis into production and recover the estimate of 635 MMbbl gross.
The funds will cover the completion of project engineering, pre-drill and completion of the initial producing wells, and construction and installation of production facilities and subsea equipment.
Based upon engineering, planning, and contracting studies, first oil is targeted for the 3Q 2006. Production is expected to reach plateau levels at nameplate design capacity within the first six months of operation. The field has an estimated production life of 15 years.
02/10/03