Offshore staff
HOUSTON -- Helix subsidiary, Energy Resource Technology, Inc. (ERT), has acquired a 100% working interest in the Typhoon oil field (Green Canyon blocks 236 and 237), the Boris oil field (Green Canyon block 282), and the Little Burn oil field (Green Canyon block 238) from Chevron, BHP Billiton, and Noble Energy.
Prior to the acquisition, the owners of Typhoon were Chevron (50%) and BHP Billiton (50%); the owners of Boris were BHP Billiton (50%), Chevron (25%), and Noble Energy (25%); and the owners of Little Burn were BHP (60%) and Noble Energy (40%). The agreement is subject to MMS approval of a new development plan, which is expected in the next 60 days.
Production from the Typhoon and Boris fields has been shut-in since theTyphoon TLP was damaged by Hurricane Rita in September 2005. Prior to the storm, combined flow rate from the two Typhoon wells and two Boris wells averaged approximately 13,000 b/d of oil and 21 MMcf/d of gas in the last month of production.
A new well, Typhoon No. 4, was drilled and flow tested at a rate of 7,700 b/d of oil in last September. Additionally, the Little Burn development well was drilled by BHP in 2005 and oil and gas pay was logged. Flow rates from this well are expected to be similar to Typhoon No. 4. ERT plans to tieback both wells to the new production facility once in place.
ERT will also have farm-in rights on five nearby blocks where three, moderate to low risk prospects have been identified in the Typhoon mini basin. Following the acquisition of Typhoon and MMS approval, the company will rename the field Phoenix.
"The acquisition of the Typhoon, Boris, and Little Burn fields fits our business model extremely well, says Owen Kratz, chairman and CEO of Helix. "The four wells that were flowing have a good production history and the field is well understood. There is immediate upside in the Typhoon GC 237 No. 4 well and the Little Burn GC 238 No. 1 ST-3 well, and we expect to bring production from these fields on line in mid-2008.
Helix plans to re-develop all of the fields using a re-usable, mobile floating production unit. "There is further upside in the form of several exploration prospects that exhibit the same geophysical attributes as those seen in the proven productive areas in the existing field," says Krartz.
"All of these prospects, if successful, are well within tieback distance to the planned floating production unit and some can be drilled with the Company'sQ4000 semisubmersible. It is also planned that the installation of the new subsea infrastructure will be carried out by multiple vessels from our deepwater fleet."
08/23/06
