EPL, Hunt wells find pay on gulf shelf

By OGJ editors
HOUSTON, Aug. 6 -- Energy Partners Ltd., New Orleans, reported dual oil and gas successes in the South Timbalier and Eugene Island areas of the Gulf of Mexico shelf.

The company plans to deepen its B-3 Cap Rock exploratory well in South Timbalier 41 field to test prospective sands below the lowest pay sand encountered to date.

The encouragement to deepen came when the well discovered 70 ft of high-quality oil and gas pay in five sands above 16,374 ft. It is now being sidetracked to take points updip to the discovered sands for maximum recovery.

EPL is operator with 60% working interest, and W&T Offshore Inc. has 40%.

Meanwhile, in South Timbalier 46 field, EPL production-tested the first of four deeper pay sands encountered earlier this year in the No. 3 (A-1) well. The well is flowing to sales at 7 MMcfd of gas and 120 b/d of condensate, and EPL may drill another well to test deeper objectives.

EPL, with 100% interest, brought ST 46 field on production in mid-May and has hiked its first producing well, ST 46 No. 4 (A-2), to 37 MMcfd and 530 b/d of condensate from 25 MMcfd earlier.

Operator Hunt Petroleum Corp. 60% and EPL 40% are drilling the D-3 exploratory well at Eugene Island 312 after gauging a second gas discovery. The D-2 well went to 8,380 ft and cut 50 ft of high-quality gas pay in one sand. The firms' first discovery, D-1 in 2006, went on production in late July, and D-2 is expected on line in the third quarter.

The Longhorn exploratory well onshore in Terrebonne Parish is a dry hole at TD 19,000 ft after encountering substantial water-wet sand throughout the objective section. EPL elected not to participate in a proposed completion. The Chimney Rock prospect in ST 26 and another prospect at West Cameron 312, both with 100% interest, were dry holes.

The company hiked second quarter exploration expense guidance for dry hole costs and other charges to $37-40 million from $15-25 million.

EPL is drilling four exploratory wells and plans to spud four others by yearend.

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