GULF OF MEXICO
David Paganie • Houston
Lucius sidetrack confirms significant resource potential
A sidetrack appraisal well on the Lucius discovery in the Gulf of Mexico Keathley Canyon block 875, encountered about 600 net ft (183 m) of oil and gas pay in subsalt Pliocene and Miocene sands, operator Anadarko reports.
The Lucius appraisal well was drilled as an up-dip sidetrack, approximately 3,200 ft (975 m) due south of the discovery well. SemisubEnsco 8500 drilled the well to 20,600 ft (6,279 m) TD in 7,100 ft (2,164 m) of water. The Lucius discovery, announced last December, was drilled to 20,000 ft (6,096 m) TD and encountered more than 200 net ft (61 m) of pay.
Anadarko says it will continue appraisal activity in the area this year as it evaluates development options. The company previously said it was considering a tieback to theRed Hawk cell spar as one scenario. However, given the results of the initial appraisal well, it would seem likely that a standalone development would be considered as well. Wood Mackenzie’s initial estimate for recoverable reserves is about 150-200 MMbbl of liquids/oil and about 1 tcf of natural gas.
The Lucius discovery is about 7.5 mi (12 km) east of Chevron’s 2009 discovery on Buckskin in Keathley Canyon block 872. There, Buckskin No. 1 was drilled in 6,920 ft (2,109 m) of water to 29,404 ft (8,962 m) deep and encountered more than 300 ft (91 m) of net pay. Commercial viability of the field has not been determined.
Anadarko operates the Lucius well with a 50% working interest. Partners are Plains E&P Co. (33.33%) and Mariner Energy Inc. (16.67%).
Following work on Lucius, Anadarko will useEnsco 8500 to appraise its Heidelberg discovery. The company plans to drill five to seven exploration wells and three appraisal wells this year in the GoM deepwater.
Cobalt outlines drilling plans
Cobalt International Energy has outlined its Gulf of Mexico drilling program for this year, which is being funded, in part, through its listing on the New York Stock Exchange. The company launched its initial public offering in December of last year.
Cobalt’s drilling plan calls for three company-operated exploration wells (North Platte, Aegean, and Ligurian), three partner-operated exploration wells (including Firefox), and one partner-operated appraisal well (Heidelberg No. 2). It expects results from four of the prospects this year.
The company’s Criollo prospect exploration sidetrack well has reached a planned TVD of 31,145 ft (9,493 m). The original well discovered 55 ft (17 m) of Miocene-age oil-bearing reservoirs and the sidetrack logged 73 ft (22 m) of Miocene oil in similar reservoirs. Both the original Criollo well and the sidetrack encountered structural complexities associated with salt, which prevented testing the entire interval, the company says.
Cobalt plans to review the well data and to reprocess existing 3D pre-stack depth migration seismic data to determine its next steps.
The next exploratory well in Cobalt’s 2010 drilling program, Firefox No. 1, is scheduled to spud in the first quarter. Firefox is in Green Canyon blocks 773 and 817, where BHP Billiton Petroleum (GOM) Inc. is the operator and Cobalt owns a 30% working interest. This prospect lies within the Tahiti basin, northeast of the Heidelberg discovery.
Cobalt’s operated North Platte No. 1 well is scheduled to spud in the second quarter. It targets Lower Tertiary horizons and is in Garden Banks blocks 915, 916, 958, 959, and 960. At press time, the company was working to secure a rig to drill the well.
Cobalt operates North Platte with a 60% working interest. Total E&P USA Inc. holds the remaining 40% working interest.
Last year, Cobalt established long-term alliances with Sonangol and Total in the GoM. Cobalt assigned 25% of its working interest in 11 GoM deepwater leases to Sonangol. The agreement with Total was for a 60/40 working-interest split across 214 deepwater leases. In both cases, Cobalt is the designated operator for all shared leases.
Meanwhile, the company has signed FMC to a multi-year frame agreement to provide subsea systems, including production trees, manifold hardware, and distribution systems.
Petrobras gains 100% interest in Cascade
Petrobras has acquired Devon Energy’s 50% participation interest in the Cascade field. Following settlement of the acquisition, Petrobras will hold 100% participation in the field.
Petrobras is developing the Cascade field in conjunction with the Chinook field using the FPSOBW Pioneer, the first FPSO platform to operate in the US Gulf of Mexico. It is expected to begin production in the middle of this year.
Meanwhile, Devon has closed on the sale of its 25% working interest in the Jack field to Maersk Oil. In December of last year, Devon announced an agreement with Maersk Oil to purchase Devon’s interests in three Lower Tertiary projects.
Devon says the aggregate purchase price of its interests in the Jack, St. Malo, and Cascade Lower Tertiary projects remains $1.3 billion. The company estimates its after-tax proceeds from the combined transactions at approximately $1.1 billion. Closings of the St. Malo and Cascade transactions are expected by the end of March.
Superior takes ownership of Bullwinkle
Superior Energy Services now owns Shell’s Bullwinkle platform and related assets. The company will plug and abandon the 29 wells associated with Bullwinkle, the deepest fixed-leg production platform on the outer continental shelf. Installed in 1988, Bullwinkle produces 4,000 boe/d and serves as a processing hub for third parties. Superior also has sold a 49% interest in the assets to Dynamic Offshore Resources, which will operate the field.
The Bullwinkle platform will be decommissioned at the end of its economic life, and Shell has agreed to pay Superior an undisclosed amount once decommissioning is complete.