Stone Energy Corporation provided an update on the deep water Taggart prospect, including the exploratory well drilled at Mississippi Canyon 816. Drilling operations have been completed and the rig is being released.
The well has been logged, and pressure readings, cores and fluid samples have been taken in the Pliocene and Upper Miocene section sands. The data indicates a discovery with approximately 90 feet of net oil and gas condensate pay in two sands. The partners plan to further analyze the data from this well and develop a plan which is expected to include a sub-sea tie back to an existing facility. Stone holds approximately 23% working interest in the project, and LLOG Exploration Offshore, L.L.C. is the operator.
A discovery was also made on the Taildancer prospect at Ship Shoal 113, with the well encountering 130 feet of net oil and gas pay. Production from this discovery is projected to be on line in the fourth quarter of 2013. Stone is the operator with a 100% working interest.
The rig for the deep water San Marcos prospect at Mississippi Canyon 983 is on location and has begun drilling. Stone holds a 25% working interest in the prospect which is operated by Apache Deepwater LLC.
Stone also provided updated production guidance for the third quarter of 2013, increasing from 42-45 Mboe per day (252-270 MMcfe per day) to 46-49 Mboe per day (276-294 MMcfe per day). The full year guidance has also been increased from 41-44 Mboe per day (246-264 MMcfe per day) to 43.5-45.0 Mboe per day (261-270 MMcfe per day). The increase was due to higher projected Appalachian volumes, incremental volumes from the La Cantera field and a more active workover/recompletion GOM shelf program. The guidance still incorporates some projected hurricane shut-in time as well as reduced fourth quarter volumes in Appalachia due to cold weather pipeline restrictions.
Additionally, Stone’s Board of Directors has authorized an increase to the 2013 capital expenditure budget from $650 million to $710 million, which excludes major acquisitions and capitalized SG&A and interest. Most of the capital expenditure budget increase is expected to be in the GOM deep water, with a minor increase in the Appalachia area. The final capital expenditure amount and the allocation of capital across the various areas is subject to change based on several factors including permitting times, rig availability, non-operator decisions, farm-in opportunities and commodity pricing.
LLOG Exploration today provided an update on the status of Deepwater drilling contracts, production at the Who Dat field, development activities at the Marmalard discovery, and its recent Powerball discovery.
On April 2, a three-year contract, with an option for an additional year at mutually-agreeable rates, between LLOG Bluewater Holdings, LLC (the joint venture partnership between LLOG and Blackstone) and Sevan Drilling was announced for the Sevan Louisiana ultra-deepwater drilling rig that is currently under construction in China. The rig will be capable of drilling in water depths up to 10,000 feet, and is scheduled for delivery in Q4 2013.
On April 16, LLOG Bluewater Holdings and Seadrill announced a three-year contract, with an option for a fourth year at mutually-agreeable rates, for the new-build, ultra-deepwater drillship West Neptune. The West Neptune is being built in South Korea and is scheduled for delivery in Q2 2014. The rig will have two BOPs, will be outfitted to work in up to 10,000 feet of water, and is capable of water depths up to 12,000 feet and drilling depths up to 37,000 feet.
First production from the fifth well in the Who Dat field at Mississippi Canyon 503/504/546/547 was initiated on April 12, bringing total production to 28 thousand barrels of oil and 58 million cubic feet of gas per day. The development plan for the field calls for the company to drill eight additional wells, which would fully utilize the 60 MBOPD and 150 MMCFD capacity of the floating production system.
Drilling activities are underway on Mississippi Canyon 255 #1, a development well resulting from the Marmalard discovery announced in August of 2012. The Marmalard discovery well at Mississippi Canyon 300 was drilled to a total depth of 18,100 feet and encountered two oil-bearing zones. Marmalard is one of the discoveries that will be tied back to the Delta House Floating Production System, which is under construction and scheduled to begin operations in 2015. LLOG Bluewater owns a 26% working interest in Marmalard.
On the Shelf, the South Timbalier 231 #1 well (Powerball South) was drilled to a depth of 18,915 feet and encountered over 90 feet of net gas/condensate pay in high quality reservoir sands. Facilities are being constructed to bring the well on line in Q3 2014, and another well is planned for later in the year. LLOG Bluewater owns a 74% working interest in South Timbalier 231/232.
Scott Gutterman, President and CEO of LLOG, commented: “These activities are further evidence of the tremendous growth being experienced at LLOG. The two rig contracts will allow us to develop the acreage around our Delta House project and explore our extensive portfolio of exploration prospects in the Deepwater Gulf of Mexico. Who Dat continues to perform extremely well, and we are quite enthusiastic about the opportunities at Marmalard and Powerball.”
Balltec Ltd, Morecambe,UK, has been contracted by Houston Offshore to supply and install 10 off MoorLOK™ subsea mooring connectors for the Tubular Bells project, located in the Mississippi Canyon area of the Gulf of Mexico.
The contract covers the manufacture of 10 off 15,000kN MoorLOK™ connectors for the mooring of the Williams floating production system (FPS), Gulfstar GS1 on the Tubular Bells field at a water depth of 4,500ft. The connectors will be manufactured in accordance with the ABS Guide for the Certification of Offshore Mooring Chain, 2009, and are due to be installed during the first half of 2013.
Martin Bell, Sales and Marketing Director at Balltec Ltd said:
‘Balltec is proud to have been awarded this significant mooring connector contract. The Tubular Bells project has been under development for some time and we are very much looking forward to working with Houston Offshore Engineering and Williams to play our part in bringing this project to first oil.’
Russell Benson, Managing Director, Balltec Ltd said:
‘The award of the Tubular Bells mooring connector package is another significant contract gain in 2012. With Tubular Bells and several other projects due to be completed next year as well as new products ready to be launched, 2013 is going to be another exciting year for Balltec.’
The Balltec MoorLOK™ is a disconnectable, subsea mooring connector designed for the temporary and permanent mooring of floating structures.
FMC Technologies, Inc. announced today that it has received a subsea equipment order from LLOG Exploration Company, LLC (LLOG Exploration) for the Who Dat field. The order has an estimated value of $30 million in revenue.
The project is located in the Gulf of Mexico Mississippi Canyon Block 503 in water depths of approximately 3200 feet (975 meters). FMC Technologies’ scope of supply includes subsea trees, a subsea manifold, multiphase meters and a subsea distribution system. The equipment is scheduled for delivery in 2013.
“FMC Technologies is pleased to have been chosen by LLOG Exploration to provide subsea systems for its continued development of the Who Dat field,” said Tore Halvorsen, FMC Technologies’ Senior Vice President, Subsea Technologies. “We welcome the opportunity to continue supporting LLOG Exploration with its Gulf of Mexico developments.”
InterMoor, an Acteon company, has completed an installation and recovery project for Apache Deepwater LLC (Apache) in Mississippi Canyon Block 148, Well 5 in the Gulf of Mexico.
The work scope included the overboard, wet transfer, deployment and recovery of a 30-ton interchangeable riserless intervention system (IRIS) owned by Blue Ocean Technologies. InterMoor undertook the work in water approximately 168 meters deep from Cal Dive’s Uncle John semisubmersible vessel.
InterMoor delivered the project using its compensated anchor handler subsea installation system (CASIM) which reduces heave motions relative to vessel motions. CASIM units are pre-charged at the surface to deliver the needed heave compensation for the load at depth. InterMoor’s proprietary CASIM method requires less deck space and demands fewer deck operations than the traditional buoy-based heave-compensated landing system. The company also provided the associated rigging equipment and a technician to help facilitate the subsea compensation.
“Apache selected InterMoor for this project on the basis of our service record, the fact that we had the necessary equipment available and because of our experience in subsea operations of this kind,” said InterMoor project manager Jacob Heikes. “Although we have used CASIM to deploy and recover many types of subsea equipment, this is the first time that we have used CASIM for IRIS deployment and recovery, and the project’s success shows that this proven installation method is suitable for a wide range of subsea equipment.”
In the following video, see the Shell’s Olympus TLP hull arrive in Texas following the long journey from South Korea. The approximately 32,500 metric ton main body of the Olympus TLP, arrived in Texas two weeks ago.
The installation of the topsides will now take place before the TLP departs for its final location on the Mars Field in the Gulf of Mexico.
The Mars Field, owned by Shell (71.5%) and BP (28.5%), and operated by Shell, continues to contribute to the Gulf of Mexico’s position as a critical component of the US energy supply. Discovered in 1989 and brought onto production in 1996, the Mars Field is considered one of the largest resource basins in the Gulf of Mexico. The site for the Olympus TLP, known as the Mars B development, is located about 130-miles south of New Orleans in the Mississippi Canyon and lies in approximately 3000 feet of water.
The Olympus TLP, Shell’s sixth and largest tension leg platform, will also provide process infrastructure for two of Shell’s deep water discoveries, West Boreas and South Deimos.
FMC Technologies, Inc. announced today that it has received an order from BP for the manufacture and supply of subsea equipment to support water injection in the Thunder Horse field.
The Thunder Horse oil field is located in the Mississippi Canyon area of the Gulf of Mexico, 150 miles (240 kilometers) southeast of New Orleans in approximately 6,300 feet (1,920 meters) of water. FMC Technologies’ scope of supply includes two manifolds and associated controls equipment. In addition, the scope includes several pipeline end terminations, flowline and well jumper kits and umbilical termination assemblies. Deliveries are scheduled to commence in the first half of 2013.
“FMC Technologies is pleased to continue supporting BP as they further develop Thunder Horse,” said Tore Halvorsen , FMC Technologies’ Senior Vice President, Subsea Technologie
FMC Technologies, Inc. announced that it has received a subsea equipment order from LLOG Exploration Company, LLC (LLOG Exploration) for their Delta House project. The order has an estimated value of $114 million in revenue.
The project is located in the Gulf of Mexico Mississippi Canyon area in water depths of approximately 5000 feet (1524 meters). FMC Technologies’ scope of supply includes nine subsea trees, four subsea manifolds, five multiphase meters and associated topside control systems and subsea distribution systems. The equipment is scheduled for delivery in 2013.
“FMC Technologies is pleased to provide LLOG Exploration subsea systems for their recent Mississippi Canyon developments,” said Tore Halvorsen , FMC Technologies’ Senior Vice President, Subsea Technologies. “We welcome the opportunity to provide them with the subsea technology to meet their needs.”
“LLOG Exploration’s strategic alliance with FMC Technologies has been critical to LLOG Exploration’s success,” said Scott Gutterman , LLOG Exploration’s President and CEO.
Gutterman added, “We are pleased that FMC Technologies will provide the subsea equipment for this important project.”