Monthly Archives: July 2013
by Tyler Durden
Whenever the annual change in core capex, also known as Non-Defense Capital Goods excluding Aircraft shipments goes negative, the US has traditionally entered a recession. Where is this number now: +0.8%, and declining fast. Feeling lucky?
Of course, in no other previous recession, was the US Fed holding $3.5 trillion in securities and increasing at a pace of $85 billion per month.
Source: Dept of Commerce
W&T Offshore, Inc. announced that it has made a subsalt discovery in a deep shelf exploratory target beneath its Ship Shoal 349 “Mahogany” Field.
The SS 359 A-14 well has exceeded the Company’s expectations and is currently producing from the targeted T-Sand (in excess of 17,200′ total vertical depth), at an initial flow back rate of 3,030 barrels of oil per day and 5.6 million cubic feet of gas per day, for a total of approximately 4,000 barrels of oil equivalent (Boe) per day (3,310 Boe per day net of royalty to W&T) with a flowing tubing pressure of approximately 9,400 psi surface pressure. The T-Sand is the deepest sand discovered in this field, as there is additional pay identified in the M-Sand, N-Sand, and O-Sand, all of which represent future reserve additions to the Company. The well also penetrated a thicker than expected P-sand interval (the main field pay sand) which will also serve as a future recompletion. In total, the A-14 well logged over 370 feet of net oil pay, with the T-Sand accounting for 108 feet of the total net pay. Success from the A-14 T-sand will stimulate additional drilling in 2014 to exploit the four newly discovered oil sands that were encountered in the A-14 well. W&T holds a 100% working interest in the field.
Tracy Krohn, W&T Offshore’s Chairman and CEO, stated, “Our exploration team utilized our subsalt imaging technology to identify and deliver this subsalt discovery which is a deep shelf exploration extension to our producing Mahogany Field. This new oil discovery is part of our organic growth plan and adds substantial value to the Company. We found a very high quality oil sand in the T-sand reservoir with great flow characteristics. Another key value driver on this project is our ability to produce this discovery immediately through our existing infrastructure at Mahogany. We are evaluating additional targets in this highly prolific field based upon our continuing success and look forward to our next exploratory well at Mahogany, the A-15 well, which should begin drilling in in September.”
The platform rig at Mahogany is currently working on a major recompletion in the A-4 well, designed to bring a behind pipe P-Sand interval into production at an expected rate of 1,000 Boe per day, net of royalties to W&T with an anticipated production date of August or September. Following the A-4 recomplete the Company expects to spud the A-15 subsalt exploratory well, a multi-horizon target that is anticipated to encounter multiple stacked oil sand targets. The A-15 well is scheduled to reach total depth near the end of 2013 or early 2014 with a target IP rate of 1,390 Boe per day, net of royalty to W&T. The unrisked reserve potential associated with the A-15 well is anticipated to be in the range of 1.8 to 6.2 million Boe.