BluEnergies secures five-year lease in SS-59 block from BBG2 lease sale
BluEnergies Ltd., a Canadian-based E&P firm, says that it was the successful top bidder for the SS-59 block offshore Louisiana in the Big Beautiful Gulf 2 lease sale held on March 11, 2026.
The company secured a 100% working interest in the SS-59 block a 5,000-acre lease block located in shallow water, under a five-year term. The winning bid for this lease – located in less than 20 feet of water – gives the company access to oil and gas reserves “in the promising Crown Royal prospect.”
The SS-59 block was bid through the company’s agent, Focus Exploration LLC, based in Houston, Texas. Signing of the official lease provided by the BOEM is expected to occur in the next several weeks.
The Crown Royal play straddles two 5,000-acre blocks: BlueEnergies SS-59 block and SS-52 contiguous to the north of SS-59. The primary geological play is a channel levee complex which contains five objective sand intervals between 11,600 feet and 17,180 feet.
This channel levee complex was drilled by Texaco in 1987 on the southern edge of block SS-52, offsetting the northern border of block SS-59. Based on information publicly available from the BOEM database, the well proved oil and gas/condensate bearing reservoir quality sands in five intervals and successfully flow tested sands at 2 of the 5 intervals at a test rate of 1,398 barrels of oil per day of light oil and 5.54 million cubic feet of gas per day. Both zones are over pressured, BlueEnergies says.
The Crown Royal play was also originally drilled by Texaco in 1987 amidst low commodity prices – $20 per barrel oil and $2.00 per 1,000 cubic feet gas. In addition, the “poor quality” of the then-existing 2D seismic data meant that the operator was unable to quantify reservoir size. Because of this, Texaco elected not to complete the discovery.
Subsequently, several 3D seismic surveys have been acquired over the area, allowing for a fully integrated evaluation of this amplitude-based play, says BlueEnergies. The Canadian company’s management says that it now believes, due to current commodity prices and existing production infrastructure, that the reservoirs can be safely and profitably developed.
To advance the project, BlueEnergies says that it has engaged a third-party engineering firm based in Houston to conduct an independent valuation of the Crown Royal (SS-59) oil and gas reserves. The assessment will contribute to future drilling and development plans and provide a clear picture of the Crown Royal prospects’ full-scale economics.
To date, BluEnergies has focused its E&P efforts offshore West Africa, notably together with TotalEnergies in the Harper basin offshore Liberia.
About the Author
Bruce Beaubouef
Managing Editor
Bruce Beaubouef is Managing Editor for Offshore magazine. In that capacity, he plans and oversees content for the magazine; writes features on technologies and trends for the magazine; writes news updates for the website; creates and moderates topical webinars; and creates videos that focus on offshore oil and gas and renewable energies. Beaubouef has been in the oil and gas trade media for 25 years, starting out as Editor of Hart’s Pipeline Digest in 1998. From there, he went on to serve as Associate Editor for Pipe Line and Gas Industry for Gulf Publishing for four years before rejoining Hart Publications as Editor of PipeLine and Gas Technology in 2003. He joined Offshore magazine as Managing Editor in 2010, at that time owned by PennWell Corp. Beaubouef earned his Ph.D. at the University of Houston in 1997, and his dissertation was published in book form by Texas A&M University Press in September 2007 as The Strategic Petroleum Reserve: U.S. Energy Security and Oil Politics, 1975-2005.