By OGJ editors
HOUSTON, Oct. 10 -- US independents Kerr-McGee Corp., Houston, and Devon Energy Corp., Oklahoma City, Thursday reported that drilling operations at their Yorktown prospect on Mississippi Canyon Block 886 in the Gulf of Mexico are being temporarily abandoned.
"A revised drilling plan is currently being developed; however, operations are not expected to resume until 2004," Kerr-McGee said.
Currently, the drilling rig is in the process of being moved off location, Brian Engel, Devon manager, public affairs, told OGJ. "The lower section of the hole had deteriorated and we couldn't reach total depth," Engel explained.
Kerr-McGee and Devon each hold 50% working interest in the prospect, which lies in 2,500 ft of water. Devon serves as operator of the well, which was being drilled to the Middle Miocene objective and was expected to reach a projected 25,000 ft TD.
Earlier in the drilling process, loop currents had been a problem, Engel added. "The partners will evaluate all data and will consider further options," he said.
Kerr-McGee's costs associated with this well will be suspended pending its ultimate outcome, the company said. This will result in a projected third quarter exploration expense of about $80 million, it said.
Devon is paying a disproportionate share of the drilling costs; to date, the Yorktown well has cost about $86 million, of which Kerr-McGee's share is about $25 million, Kerr-McGee said.
