Petsec Energy reported that its Vermilion block 258 G-7 development well has reached 1,354 m (4,440 ft) MD and encountered three hydrocarbon bearing sands with an estimated 12-16 m (39-54 ft) of net gas pay.
Petsec Energy reported that its Vermilion block 258 G-7 development well has reached 1,354 m (4,440 ft) MD and encountered three hydrocarbon bearing sands with an estimated 12-16 m (39-54 ft) of net gas pay. The well spudded on Oct. 18 in the Gulf of Mexico, 114 km (70 mi) south of Cameron parish, Louisiana, in 47 m (138 ft) of water.
The two wells in this current development program, the G-7 and the G-3, met pre-drill expectations and are expected to be in production by late November. Production from these wells will increase Petsec Energy's production and cash flow in 2005. Petsec Energy's current net production is in excess of 20 MMcf/d. The current US gas market is very strong, with 12-month forward gas prices in excess of $7.50/Mcf.
Petsec Energy discovered the Vermilion block 258 gas field, containing an estimated 23 bcf, in January 2004. Production facilities were built and the two exploration wells, the G-1 and G-2, were brought into production in July and August. The successful G-3 and G-7 wells will take the number of productive wells on the field to four.
