By the OGJ Online Staff
HOUSTON, June 20 -- Pioneer Natural Resources Co., Dallas, and partner, Dominion Exploration & Production Inc. have approved development of the Devils Tower field in the deepwater Gulf of Mexico.
Reserves are 50 to 75 million boe. Oil production is due to begin in 2003 and increase to 8,000 to 10,000 b/d net to Pioneer. Pioneer has a 25% working interest in the field and Dominion operates the field with 75%.
Scott Sheffield, Pioneer chairman and CEO, said, "Devils Tower is the third of a trio of significant Pioneer projects sanctioned for first production in 2002 and 2003." He said the others are the previously announced Canyon Express and Sable projects.
Devils Tower field is 140 miles southeast of New Orleans in 5,610 ft of water on Mississippi Canyon Block 773. The field will be developed using a truss spar with slots for eight dry tree wells and the flexibility to accommodate future subsea tie-backs.
SparTec Inc., a division of J. Ray McDermott, has been contracted to provide the spar that will be the eighth production spar in the Gulf of Mexico. At this water depth, the spar will be the world's deepest dry tree platform.
Two development wells at Devils Tower have been completed, with the No. 4 well penetrating 350 ft of net pay in five sands within a previously untested fault block. The No. 5 and No. 5 sidetrack extended the hydrocarbon column in six previously penetrated sands and contained over 400 ft of net pay. Both wells will be temporarily abandoned and completed as producers when the spar is installed.
Pioneer expects to spud its first operated deepwater gulf well in July. The well will be drilled in East Breaks Block 981 on the Argo prospect (formerly known as Sanibel). Pioneer has a 75% working interest and Mariner Energy Inc. 25%.