Gulf of Mexico

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Shasta serves as deepwater technology proving ground

Texaco says gas production from two recently completed subsea wells on its Shasta prospect demonstrates the potential of emerging technology and innovation in subsea developments. Shasta is located 220 miles southwest of New Orleans in water depths ranging from 850-1,040 ft.

Shasta is the first subsea development in the Gulf of Mexico for Texaco Exploration & Production (TEPI) and its partners Hardy Oil & Gas USA and Samedan Oil. The prospect consists of Green Canyon 92, 136, and 137. Current production from two subsea wells is 58 mmcf/d of gas and 800 b/d of condensate.

Production is flowing under reservoir pressure to Texaco's Kilaeua platform 9.5 miles away in Green Canyon 6.

Popeye becomes third deepwater producer for Shell

Shell Offshore has begun natural gas production from its Popeye Field. Popeye is located about 140 south of New Orleans in 2,000 ft of water on Green Canyon 116. Following Tahoe and Auger, Popeye is Shell's third deepwater field to come on production since January 1994.

"We are very encouraged by the installation experience and initial performance of the Popeye subsea system," said Rich Pattarozzi, general manager of Shell Offshore's deep-water division. "Our subsea experiences both at Tahoe and Popeye have validated many of the technical advances required for installation of the subsea system at our Mensa project in 5,400 ft of water."

With full development, the field's estimated ultimate recovery could be as much as 320 billion cu ft of gas and 10 million bbl of condensate.

Garden Banks yields success for Amerada Hess

Amerada Hess has drilled a successful exploration well on Garden Banks 216. The well encountered about 150 ft of oil and gas pay in three sands. It was drilled on a structure located approximately three miles northeast of the development site for the operator's Baldpate prospect in Garden Banks 260. Amerada Hess is considering tying this discovery into the Baldpate prospect production facility.

Amerada Hess plans to utilize a compliant tower to develop the Baldpate. The prospect contains proved and probable reserves of about 100 million bbl on a crude oil equivalent basis, not including this discovery. The tower will have the capacity to handle 40,000 b/d of oil and 150 mmcf/d.

mmcft/d of natural gas. Amerada Hess and Oryx Energy each own a 50% working interest in this discovery and in the Baldpate development.

Leviathan to transport Mahogany gas

Leviathan Gas Pipeline Partners has been contracted by partners Phillips Petroleum, Anadarko Petroleum, and Amoco Production for the gathering of gas from the Phillips-operated Mahogany Field. Mahogany is located in Ship Shoal 349 and 359 about 80 miles off the Louisiana coast in 370 ft of water.

Leviathan will own approximately nine miles of new 16-inch pipeline connecting the Mahogany Field to a subsea location on its LOGS system. Once the gas enters LOGS, Leviathan will be capable of redelivering the gas to multiple interstate pipeline systems through LOGS and the recently completed interconnect with its Manta Ray system. The agreement provides for gathering of all of the Mahogany Field gas production for the life of the field. Initial deliveries are projected to begin in December.

British-Borneo raises funds for deepwater

British-Borneo launched a two-for-five rights issue worth 54 million to finance increased activity in the deepwater Gulf of Mexico. Some 15 million will be spent on exploration and appraisal of existing deepwater interests, with about 25 million on bidding for leases, pursuing farm-in opportunities and financing associated initial exploration expenditure.

British-Borneo plans to utilize Atlantia's SeaStar production system design to develop the Morpeth prospect, comprising Ewing Bank 921, 964, and 965. Water depths range from 1,500 to 1,700 ft. Initial production rates are expected to be 25,000 b/d of oil and 25 mmcf/d of gas. Estimated reserves are put at up to 50 million bbl.

SeaStar applies tension leg platform technology in a new design to enhance the commercial viability of deepwater discoveries of up to 100 million bbl. The system is expected to cost between $30 million to $70 million, fully equipped and installed. It can be designed to produce at up to 50,000 b/d of oil equivalent from fields in water depths in excess of 600 ft.

MCN acquires Dauphin Island gathering system

Detroit-based MCN is acquiring a majority interest in the Mobile Bay, Alabama-area properties of Dauphin Island Gathering Partnership. The sellers are Tenneco Energy, Enron Gas Gathering, and Dauphin Island Gathering Company (DIGCO). Terms were not disclosed.

The properties comprise a 90-mile offshore gas gathering system that currently serves Mobile Bay, Viosca Knoll, and potentially, the Destin Dome area. The system is capable of moving 400 mmcf/d of gas to interconnections with the Transco, Florida Gas, and Koch Gateway pipelines. DIGCO will operate the system and retain an ownership interest.

Flextrend Development encounters 130 ft of pay

Flextrend Development says logs indicate its Viosca Knoll 817 A3 well encountered 130 ft of vertical pay in two separate reservoirs. The well is being sidetracked as a high-angle production wellbore in the Text X-1 reservoir, with another recompletion zone identified at 2,500 ft.

Flextrend, the operator, owns 75% of the prospect, designated Phar Lap. Tatham Offshore owns 25% interest. The first two wells completed on the block currently are producing a combined 65 mmcf/d of gas from the Text X-1 reservoir. The A-3 is expected to begin production later this month.

Aker Omega assists in Phillips operation at Garden Banks 70/71

Aker Omega recently assisted Phillips Petroleum with remote subsea choke retrieval at Phillips's Seastar development in Garden Banks 70/71. Aker says this is the first time such an operation has been conducted in the Gulf of Mexico. The operation involved diverless tools with ROV assistance. It was completed in 37 hours, including time to move the crew from the host platform 13 miles away at Vermilion 386B.

Chevron finds 22-ft gas zone at Ship Shoal 182/183

Chevron has encountered a 22-ft gas pay zone with a delineation well on its Ship Shoal 182/183 property. The well was drilled to 7,542 ft. Test results are pending. Two development wells are planned. Partners include Tel Offshore Trust.