Linc Energy Ltd., Brisbane, has completed a well in Cedar Point field in Galveston Bay 28 miles southeast of Houston and is drilling and completing two more wells.
The completed well has an initial production rate of 400 b/d of oil and 3.6 MMcfd of gas from an undisclosed formation.
Linc Energy has identified 10 locations in the field from recently reprocessed 3D seismic.
Historical average cumulative production in Cedar Point field has been 600,000 bbl/well of oil equivalent.
Linc Energy anticipates that the Cedar Point reservoirs will be capable of sustaining excellent production rates over several years in contrast to higher declines at Barbers Hill field due to the ten-fold increase in the size of each completed reservoir.
The 10 identified drilling and recompletion locations have a combined mean reserve potential of more than 4.1 million bbl, Linc Energy said. The company will continue to evaluate the Cedar Point data as well as similar data in adjacent Atkinson Island field.
Linc Energy also said its team has identified some exciting subsalt opportunities on its large Gulf Coast acreage position and that it will provide an update in coming months.
Cedar Point field, in 2-3 m of water in the heart of the Miocene, Frio, and Vicksburg oil trends, has been producing for more than 75 years. The field consists of a deep-seated salt dome underlying prolific oil and gas reservoirs.
Discovered in 1938 by the Standard Oil Co. of Texas, Cedar Point has produced more than 20 million bbl of oil and 28 bcf of gas.
The Frio Deep-Seated Salt Dome trend has the second highest estimated ultimate recovery of the 32 most prolific plays in Texas, Linc Energy said.