Garden Banks deepwater oil discovery disclosed

A group led by Deep Gulf Energy LP has made a deepwater oil discovery at Garden Banks Block 506 about 145 miles southeast of Galveston, Tex.

The Danny II exploratory well went to 14,750 ft in 2,800 ft of water and encountered more than 70 ft of high-quality net pay, said partner Helix Energy Solutions Group, Houston. Preliminary data indicate oil with more than 9,500 psi of bottomhole pressure, and more tests are under way to determine more precisely the composition of the reservoir fluids.

The discovery will likely be developed via subsea tieback to Helix’s 70% owned and operated East Cameron 381 platform 31 miles north in 370 ft of water. Danny II is to go on production in the fourth quarter of 2012.

Deep Gulf Energy and Deep Gulf Energy II LLC have a 50% working interest in the well, and Helix Energy has the other 50%.

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