Petsec hits GoM gas again
Offshore staff
SYDNEY -- Petsec Energy Ltd. hit gas with the Mobil Bay 993 #1 well in the Gulf of Mexico. The company says the gas will be brought onstream in 3Q 2007.
The company says the well will be cased and completed for production and that a caisson will be installed to support production facilities.
Mobile Bay 993 #1 is the first well in a one- to three-well drilling program being conducted on the Mobile Bay 993 and 994 leases, 160 km (99 mi) east of New Orleans and south of the recent gas discoveries made in Mobile Bay 950 and 951.
The Mobile Bay 993 #1 well was drilled to the target depth of 1,013 m (3,324 ft) and encountered 6 m (20 ft) of net gas pay, higher than Petsec's pre-drill expectations.
The three other wells drilled in recent months on the Mobile Bay leases also discovered gas and are now being readied for 2007 production.
The Mobile Bay leases are among an additional 37 leases acquired by Petsec in the GoM in the past year.
Petsec expects to produce about 8 bcf of natural gas this year from its GoM gas fields and generate over $45 million in operating cash flow from that production, with a similar amount forecast for 2007.
Petsec says its 2006 drilling performance augers well for the expanded drilling program of 14-20 wells in 2007.
Petsec Executive Chairman Terry Fern says identified prospects over the company's 51 leases in the GoM could contain more than 270 bcf of gas and 32 MMbbl of oil.
12/28/2006