Offshore staff
Kerr-McGee Corp has made a deepwater GoM discovery at East Breaks block 599 in 3,220 ft water depth with field reserves of 10-20 MMbbl. The company will develop the discovery as a subsea tieback to the Kerr-McGee-operated Boomvang production hub, 3 mi. south in East Breaks block 643.
The company spudded the East Breaks block 599 well on May 27, and drilled to 9,142 ft TD. Drillers encountered several oil sands with more than 135 net ft of high-quality pay. Kerr-McGee will temporarily abandoned the well for completion in early 2006.
"Our deepwater hub-and-spoke strategy for developing core areas continues to add value through satellite successes such as the East Breaks 599 discovery," says Dave Hager, senior vice president, Kerr-McGee. "We plan additional satellite exploration in the East Breaks area, with a four-well exploratory program at Northwest Nansen near our Nansen production hub. We expect to spud the first well later this summer and estimate that the combined resource potential for the four fault blocks is 20-50 MMboe."
Kerr-McGee operates East Breaks block 599 with a 33.34% interest. Partners in the block are Amerada Hess Corp. 33.33% and Marubeni Oil and Gas (USA) Inc. 33.33%.
The company also reports that its Chilkoot exploratory well in Green Canyon block 320 is noncommercial. It is evaluating well data and is considering additional appraisal.
Kerr-McGee drilled the well to 32,023 ft TD, a company record. The company is temporarily abandoning the well and will consider it for future re-entry or sidetrack. The Chilkoot well is the deepest penetration in western Green Canyon and the data obtained is important for the geologic understanding of this under-explored area. Kerr-McGee operates Chilkoot with 33.33% and holds interests in 35 blocks in the area.
The company is moving the rig used on Chilkoot to the Conquest prospect in Green Canyon block 767 in the company's Constitution corridor. Following the Conquest appraisal, the company will spud the West Covington prospect on Green Canyon block 765. Kerr-McGee operates Conquest and West Covington with 50% working interests. The prospects have an estimated gross potential of 90-240 MMboe.
The Constitution hub, which includes the Ticonderoga subsea tieback development, is Kerr-McGee's sixth-operated deepwater GoM hub. First production is expected in mid-2006.
Kerr-McGee estimates its 2Q exploration expense will be about $135 million, which includes $18 million for Chilkoot.
7/01/05
