COVINGTON, Louisiana and THE WOODLANDS, Texas – LLOG Exploration Offshore L.L.C. and Repsol E&P USA Inc. have signed an asset exchange and joint participation agreement in the deepwater Gulf of Mexico.
The agreement provides for the drilling of a delineation well atRepsol’s Leon discovery and covers Keathley Canyon blocks 642, 643, 686, and 687. In addition, Repsol will acquire an interest in the LLOG-operated Moccasin discovery in Keathley Canyon block 736.
Discovered in late 2014 on Keathley Canyon block 642, Leon is about 200 mi (322 km) offshore Louisiana in approximately 6,000 ft (1,829 m) of water. The discovery well was drilled to a TD of about 32,000 ft (9,754 m) and encountered nearly 500 ft of high-quality net oil pay in multiple sands in theLower Tertiary formation but has not yet been fully delineated.
The new agreement with LLOG provides for the drilling of a delineation well this summer which will be operated by LLOG. LLOG will have a 33% working interest in the well while Repsol will have a 50% working interest. Following the scheduled delineation drilling, potential development options will be evaluated for this field.
In 2011,Chevron discovered Moccasin on Keathley Canyon block 736 in more than 6,500 ft (1,981 m) of water. The discovery well was drilled to a TD of more than 31,000 ft (9,449 m) finding nearly 400 ft (122 m) of net oil in the Lower Tertiary. LLOG subsequently licensed the block in a 2017 lease sale.
Moccasin and Leon are less than 20 mi (32 km) apart which provides the opportunity for co-development. LLOG will retain a 31.35% working interest in the field and Repsol will acquire a 30% interest in Moccasin.
Currently, LLOG and Repsol are joint owners in the ongoing development of theBuckskin discovery which is located on Keathley Canyon blocks 785, 828, 829, 830, 871 and 872 in approximately 6,800 ft (2,073 m) of water. The initial phase of this large-scale, deepwater project consists of two development wells which were drilled to about 29,000 ft (8,839 m), also targeting the Lower Tertiary formation. First production is expected in mid-2019. LLOG is the operator.