LLOG continues to advance deepwater E&P projects in US Gulf of Mexico
While other operators are scaling back their presence in the US Gulf of Mexico, LLOG Exploration Co. is continuing to advance its E&P activities in the deepwater Gulf. LLOG says that its strategy is to generate deepwater prospects in areas of past success, and near existing infrastructure. This enables the company to drill and develop its fields in a shorter timeframe, and place them online as quickly as possible.
Company moving forward with work at Shenandoah, Buckskin
While other operators are scaling back their presence in the US Gulf of Mexico, LLOG Exploration Co. is continuing to advance its E&P activities in the deepwater Gulf. The company recently issued an update on the status of its ongoing development projects and recent discoveries. Key highlights included:
• Successfully brought online two wells to-date in 2018, with six additional wells scheduled to be brought online prior to the end of the year
• Achieved initial production from the two-well Crown & Anchor oil discovery in June; it is now producing at a combined gross rate of greater than 10,000 boe/d
• Progressing several multi-well, multi-stage development projects as a result of prior exploratory successes.
All images courtesy LLOG except where noted
LLOG says that its strategy is to generate deepwater prospects in areas of past success, and near existing infrastructure. This enables the company to drill and develop its fields in a shorter timeframe, and place them online as quickly as possible. In addition, company officials say that their standardized approach to development allows LLOG to maintain a lower cost structure and generate faster cycle times.
Crown & Anchor, a previously-announced two-well oil discovery in 4,200 ft of water in Viosca Knoll blocks 959, 960, 1003 and 1004, was drilled by LLOG as operator in 2015 to a total depth of 14,000 ft, targeting multiple Miocene sands. The wells were tied back to the Anadarko-operated Marlin facility in Viosca Knoll 915, and both came online in early June and are producing at a combined rate in excess of 10,000 gross boe/d.
LLOG has deployed new subsea technology at Crown & Anchor that will enable to increase its standardization efforts. In August, the company reported that it had made the first of multiple deployments of Enpro Subsea’s patented flow access module (FAM) technology. A year before, Enpro had won an engineering and procurement contract for the delivery and installation of 12 FAMs.
LLOG says that it has brought online two wells to-date in 2018, with six additional wells scheduled to be brought online prior to the end of the year.
According to Enpro, FAM creates an enhanced production ‘USB port’ within the jumper envelope. This enables the operator to use standard subsea xmas trees and manifolds, with the FAM providing life of field flexibility within the system design, delivering ‘Smart Standardization’ and the capability to maximize the ultimate recovery from their subsea wells.
LLOG says that it is using the FAM technology to enable independently retrievable multi-phase metering located within the jumper envelope between the XT and the manifold. Additionally, FAM is designed to enable a range of enhanced production options including water cut metering, flow assurance, hydraulic intervention and fluid sampling, allowing the operator to adapt the technology within the FAM to suit the needs of the reservoir.
LLOG says that it is also moving forward with its Khaleesi and Mormont discoveries, located in the Green Canyon area. These fields were successfully drilled by LLOG as operator in 2017 in approximately 3,900 ft of water to a total depth of as much as 30,625 ft. Each of the two discoveries has been delineated by two wells and a sidetrack that discovered multiple oil-bearing Miocene horizons. LLOG is currently working on plans for a co-development of these discoveries. Given the upside potential of the discoveries, the company says that it is evaluating the need for a new floating production system to co-develop the fields.
The initial phase of the Buckskin project calls for two development wells and a six-mile subsea tieback to the Anadarko-operated Lucius FPS in Keathley Canyon block 875.
LLOG and its partners have also sanctioned the Stonefly discovery, located in Viosca Knoll block 999. LLOG successfully drilled two wells at Stonefly including the discovery well in 2016 and a follow up well in 2017, both of which encountered oil-bearing sands in the Middle Miocene. Subsea tieback for the two wells to the nearby Ram Powell platform owned by Talos Energy is currently being planned with estimated first production around December 2019.
Elsewhere, a subsea pump installation project has been approved by LLOG and its partner, Deepwater Development Co., to optimize reserves and accelerate production from its Who Dat field. Installation of the subsea pump is expected to be completed in the second half of 2019 and to result in an increase in production rate of 3,000 b/d of oil and an increase in proved reserves of 7 to 10 MMboe.
LLOG also reported that it has four previously-announced GoM discoveries (six wells) that are under development and are expected to be placed on production in 2018:
• The LaFemme prospect in Mississippi Canyon block 427 was discovered in mid-2016 and was successfully appraised by a follow up well in late 2016.
• The Blue Wing Olive prospect in Mississippi Canyon bocks 427-471 was drilled in late 2016 with a discovery well encountering two oil and natural gas reservoirs in the Miocene.
• The Red Zinger prospect in Mississippi Canyon block 257 was drilled in 2016 and found multiple Miocene targets.
• The Claiborne prospect in Mississippi Canyon block 794 had a discovery well drilled in 2015 and was successfully appraised with a second well in late 2016. Both wells are being tied-back to the Walter-operated Coelacanth platform in Ewing Bank block 834.
The LaFemme, Blue Wing Olive and the Red Zinger wells are being tied-back to the LLOG-operated Delta House facility in Mississippi Canyon block 254.
Deployment of Enpro Subsea’s patented flow access module FAM technology at Crown & Anchor is expected to advance LLOG’s standardization efforts. (Courtesy Enpro Subsea)
And LLOG is finding opportunity in deepwater Gulf fields that were first owned and operated by other developers. In May, LLOG was named operator of the deepwater Shenandoah discovery in the Gulf of Mexico. At that time, affiliates of LLOG, Navitas Petroleum US, and Beacon Offshore Energy agreed to acquire a 70% working interest in the Shenandoah unit covering Walker Ridge blocks 51, 52, and the north half of 53 in the deepwater GoM. Venari Resources LLC increased its working interest from 17% to 30%.
Shenandoah was discovered in 2009 with Anadarko Petroleum Corp. as the operator; six wells with multiple side tracks have been drilled since the initial discovery.
Company officials say that plans call for a multi-well, multi-stage development at Shenandoah, including a new floating production system. The Shenandoah field is estimated to have 100 to 400 MMboe in place.
Meanwhile, LLOG is also advancing the development of its Buckskin project, located in approximately 6,800 ft of water in Keathley Canyon blocks 785, 828, 829, 830, 871, and 872. The field was delineated by multiple wells prior to 2018. The Keathley Canyon 872 #1 discovery well at Buckskin was drilled by Repsol in 2009 to a depth of 29,404 ft (8,962 m) and encountered about 400 ft (122 m) of net pay in the Upper and Lower Wilcox formations. Three subsequent appraisal wells drilled in Keathley Canyon 785 and 829 encountered an average of 375 ft (114 m) of high-quality oil pay in the Upper Wilcox. LLOG took over as operator on the Buckskin field from Repsol in January 2017.
Plans call for a multi-well, multi-stage development at Shenandoah, including a new floating production system. The Shenandoah field is estimated to have 100 to 400 MMboe in place.
The initial development phase of this large-scale project includes the drilling of two development wells to approximately 29,000 ft in Keathley Canyon block 829 and a six-mile subsea tieback to the Anadarko-operated Lucius FPS in Keathley Canyon block 875. Both of these development wells were successfully drilled in 2018 by the Seadrill West Neptune drillship with LLOG as operator.
Installation of subsea facilities will commence soon, and first production from the field is expected in mid-2019. In order to fully develop the field, which is estimated to contain nearly 5 Bbbls of oil in place, additional wells and subsea facilities will be required after the initial phase.
LLOG said that the Buckskin project will use equipment rated to 15,000 psi and will use dual 8-in. flowlines with riser base gas lift. The company has also ordered several long-lead items for the topsides and has ordered subsea equipment from TechnipFMC.
LLOG also recently announced the formation of a new executive team. In July, Scott Gutterman announced that he would retire in September after more than a decade as the privately-owned E&P’s president and CEO. At that time, the company announced that it would promote three long-term employees to key executive management positions. Philip LeJeune, LLOG’s current CFO and treasurer, was named CEO and president; Rick Fowler, the company’s vice president of Deepwater Projects, was named COO; and Phil Cossich, vice president of Planning and Budgeting, was named CFO.