Exploration/Development Briefs

Feb. 10, 2014

Gulf of Mexico

Energy XXI, Houston, reported that it will plug and abandon its Merlin well on Vermilion Block 179 in the Gulf of Mexico.

Merlin, which was drilled to 19,915 ft MD (15,700 ft TVD), "did not encounter commercial hydrocarbons."

Energy XXI, Merlin operator, was targeting multiple oil and gas sands trapped against a salt dome with the well (OGJ Online, Oct. 23, 2013).

Energy XXI said it is now "analyzing the well data to determine future drilling activities at Vermilion."

The company said it will next move the Ensco 99 rig to Grand Isle to conduct two recompletions before being mobilized to the West Delta 30 field late this fiscal year to begin a multiwell horizontal program.

Texas-South

Brenham Oil & Gas Inc. has purchased 100% working interest and 74% net revenue interest in the 332-acre Inez field prospect in Victoria County, Tex.

The company intends to sidetrack or drill a well to regain production the Yegua, where the well was initially completed in 1990 by Ken Petroleum Corp. at 8,498-8,510 ft, flowing 2.6 MMcfd on a 8⁄64-in. choke.

Reserves per well from the Yegua are estimated at 4 bcf of gas and 160,000 bbl of condensate. Brenham said it can drill 3-4 wells on the lease.

Stuart Petroleum Testers that year performed a full-scale separator test, and determined that the Roberts well had a potential of 9 MMcfd and 65.14 bbl of 48° API gravity condensate during the 4-point test. The well later encountered mechanical problems and has since been shut-in.

Brenham's secondary objective is the over-pressured Jackson shale interval from 6,000-8,000 ft, which tested gas from a 40-ft perforated interval.

In the new well to be drilled in the Yegua, the company plans to core several intervals in the Jackson shale to conduct a petrophysical study.

The company is in the process of obtaining an independent reserve report on its Gillock field interest as it plans to seek financing for a two-well development program this year.