By OGJ editors
HOUSTON, Feb. 21 -- Hunt Oil Co., Dallas, has made an oil and gas discovery on High Island Block 31, just 800 m from the borders of High Island Block 30, another shallow-water block in the Gulf of Mexico off Galveston, Tex.
Pan Andean Resources PLC is the operator and 63% interest owner of High Island Block 30.
Encouraged by the close proximity of Hunt Oil's discovery, PanAndean said it will reassess the exploration potential of its block.
Pan Andean and Hunt Oil have agreed to tie in production from the discovery to Pan Andean's platform on High Island 30. The agreement also allows Hunt Oil to become operator of the platform.
The agreement will improve the cash flow from Block 30 through a monthly production handling fee of $40,000 and will lower expected operating costs, extend the life of the platform by an expected 7 years, and improve prospectivity of the block, where little prospecting has been conducted in the past 3 decades.
Pan Andean said tying in the new discoveries and refitting the platform will take upwards of 6 weeks. In addition, ownership changes at High Island 24 have delayed refurbishment of the High Island 24 platform, which will pump the oil from High Island Blocks 30 and 31 to shore.
It is anticipated that all facilities will be on stream during the second quarter. Oil production from High Island 30 is expected to start at over 300 b/d.
