BHP Billiton and partners make double GoM find

Repsol, BHP Billiton, and Hess Corp. have made two new finds in the Shenzi field in the Gulf of Mexico.

Offshore staff

MADRID, Spain -- Repsol, BHP Billiton, and Hess Corp. have made two new finds in the Shenzi field in the Gulf of Mexico. In addition to a new pay found in the existing G104 well, the partners found oil in the Shenzi-8 well.

The Shenzi G104 well, drilled to a depth of 25,605 ft (7,804 m), encountered a total of 555 ft (169 m) of net oil pay, the companies report. The well found 68 ft (21 m) of net oil pay in the targeted Lower Miocene interval, in line with pre-drill expectations. An additional 497 ft (151 m) of net oil pay was also found in the well in two shallower intervals. The well began producing from the Lower Miocene pay in September, and further evaluation is underway to assess future development potential of shallower intervals.

In addition, the Shenzi-8 appraisal well encountered approximately 100 ft (30 m) of net oil pay in the Miocene age reservoirs, opening additional potential to the Shenzi North Flank. These are the same reservoirs that were successfully developed, and are currently producing, in the Shenzi South Flank. The well also encountered an additional 30 ft (9 m) of net oil pay in a shallower reservoir interval.

The platform already installed at Shenzi is producing in excess of 120,000 b/d of oil, 20% more than the facility’s design capacity and in excess of production expectations, the companies report.

BHP Billiton operates the consortium with a 44% stake. Hess Corp. and Repsol each hold a 28% in the Shenzi development.

10/30/2009

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