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.
Shell’s massive Olympus tension leg platform (TLP) set sail from Ingleside, Texas on 14th July, for a 425 mile trek to its final home on the Mars Field in the Gulf of Mexico.
For 10 days, tugboats will transport the over 120,000 ton platform to the location where work will begin to secure the platform in place. The Olympus TLP will be moored to the seafloor by tendons grouped at each of the structure’s corners and will float in approximately 3000 feet of water.
The Olympus TLP is Shell’s sixth and largest tension leg platform and will provide process infrastructure for two of Shell’s deep water discoveries, West Boreas and South Deimos. The project also includes pipelines that will be routed through West Delta 143C, the recently installed shallow water platform.
The Olympus TLP is expected to start production in 2014, producing at a rate of 100k boe.
FMC Technologies, Inc. announced today that it has signed a contract with BP for the manufacture and supply of subsea equipment to support the Mad Dog Phase 2 field development.
The Mad Dog Phase 2 field development is located near Green Canyon Block 825 of the Gulf of Mexico, 150 miles (240 kilometers) south of New Orleans in about 5,100 feet (1,550 meters) of water. Under the initial contract, FMC Technologies will supply subsea trees, manifolds, and jumper equipment.
“Mad Dog Phase 2 is the first project awarded under our global agreement with BP to provide technologies and services for their worldwide subsea development projects,” said Tore Halvorsen , FMC Technologies’ Senior Vice President, Subsea Technologies. “We have a long history of supporting BP’s global offshore technology requirements, and today’s announcement expands our support of their Gulf of Mexico projects.”
Callon Petroleum Company (CPE) has entered into an agreement to sell its 11.25% working interest in the Habanero field (Garden Banks Block 341) to Shell Offshore Inc., the operator of the field, for a contemplated base purchase price of USD $42 million.
The effective date of this transaction will be October 1, 2012, and it is expected to close on or before December 28, 2012, subject to the exercise of preferential rights and customary closing conditions. The Company plans to use the cash proceeds from this asset divestiture, net of purchase price adjustments, to repay borrowings under its revolving credit facility.
Callon`s net interest in the Habanero field produced approximately 336 barrels of oil per day and 506 million cubic feet of natural gas per day during the month of October 2012, or approximately 8.7% of Callon`s total production for this time period. As of December 31, 2011, Callon`s net proved reserves related to the Habanero field were 1.373 million barrels of oil equivalent, with approximately 84% classified as proved undeveloped, as presented in Callon`s most recent Form 10-K.
Fred Callon, Chairman and Chief Executive Officer, commented, “We are pleased to announce another significant step in the transformation of our asset base. Pro forma for this transaction, over 50% of our total production for the month of October 2012 would have been sourced from onshore properties. In addition, the proceeds from this divestiture provide us with additional financial flexibility to execute on our growth initiatives in the Permian Basin.”
Callon Petroleum Company is engaged in the acquisition, development, exploration and operation of oil and gas properties in Texas, Louisiana and the offshore waters of the Gulf of Mexico.
- Canyon Offshore’s Olympic Triton Returns to the Gulf of Mexico (mb50.wordpress.com)
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Technip received instructions from Anadarko Petroleum Corporation to begin the engineering, construction and transport of a 23,000-ton Truss Spar hull for their Heidelberg field development. This field is located in the US Gulf of Mexico, at a water depth of 1,620 meters (5,310 feet).
The Letter of Intent allows Technip to begin construction work on the project and other early works including purchase of long-lead items for the hull and start of fabrication, in advance of the expected project sanctioning around mid-2013, after which it will enter into Technip’s backlog.
The Heidelberg Spar will have a capacity of more than 80,000 barrels of oil and 2.3 million cubic meters of natural gas per day.
Technip’s operating center in Houston, Texas will provide the overall project management and engineering. The detailed hull design and fabrication will be carried out by Technip’s construction yard in Pori, Finland where most of Technip’s Spar projects have been manufactured.
David Dickson, Technip’s Senior Vice President, North America Region, has declared: “Technip is really proud to have received this Letter of Intent. Not only does it strengthen our long-lasting relationship with Anadarko but it also confirms its continuous trust in the Group’s extensive know-how and expertise in Spar technology. After Lucius, awarded last year and currently being built in our yard in Pori, Heidelberg will be the 8th Spar delivered by Technip to Anadarko.”
The Heidelberg Spar will be the 17th delivered by Technip (out of 20 worldwide) and thus demonstrates the Group’s leadership for this kind of floating platform and ability to tackle ultra-deepwater developments. It also confirms Pori’s track record expertise and great capabilities to deliver state-of-the-art platforms.