MMS: GOM finds extend Lower Tertiary Trend

Oct. 12, 2006
Twelve ultradeepwater discoveries in the Gulf of Mexico extend the Lower Tertiary Trend and represent a resource that could produce oil and gas for decades to come, the US Minerals Management Service said on Oct. 10.

Nick Snow
Washington Correspondent

WASHINGTON, DC, Oct. 12 -- Twelve ultradeepwater discoveries in the Gulf of Mexico extend the Lower Tertiary Trend and represent a resource that could produce oil and gas for decades to come, the US Minerals Management Service said on Oct. 10.

"This is an exciting new trend in the Gulf of Mexico, and the recent announcement by Chevron [Corp.] and its partners of the results of the Jack 2 well provides additional proof of its great potential," MMS Director Johnnie Burton said as the Department of the Interior agency released a summary of 12 announced discoveries in the area.

"This trend began to materialize in 2001 and 2002 with several discoveries in the Alaminos Canyon and Walker Ridge areas and now has extended to the Keathley Canyon area. The area could be as wide as 300 miles and involve as many as 3,000 blocks that MMS administers," she said.

While the Lower Tertiary Trend has been a significant petroleum resource in Texas and southwestern Louisiana for years, its reserves contribution in the gulf was negligible until the recent discoveries, MMS indicated.

It said 99% of the gulf's proved reserves were found in sediments of Miocene age (Upper Tertiary) and younger, while 1% are in older (Jurassic and Cretaceous) sediment that primarily are in near-shore areas off Louisiana and Alabama.

The 12 recent discoveries were in 15,000-30,000 ft of water, MMS said.

Officials also noted that the widespread industry interest in the Jack well test and the discovery by BP on its Kaskida prospect in 5,860 ft of water preceded heavy bidding activity at MMS's Western Gulf Sale 200 in August.

At that sale, they said, 82 tracts received bids in the Keathley Canyon area. BP offered the sale's highest bid of $21 million for Block 58 in Keathley Canyon, while Petrobras bid $12.8 million for Block 59, and Shell bid $6 million for Block 56 there.

Contact Nick Snow at [email protected].