GAS FIELD DEVELOPMENT DUE IN GULF OF MEXICO

Feb. 26, 1990
More gas discoveries are earmarked for development in the Gulf of Mexico. In the latest action: Texaco U.S.A. plans to install an eight slot, four pile platform to develop its Neptunite prospect on West Cameron Block 196 in 60 ft of water about 35 miles off Cameron Parish, La. Amerada Hess Corp. and partner Oryx Energy Co. will install a 12 slot, four pile platform in 304 ft of water to produce gas from Mustang Island Blocks A112, A121, and A122 about 65 miles east of Corpus Christi.

More gas discoveries are earmarked for development in the Gulf of Mexico.

In the latest action:

  • Texaco U.S.A. plans to install an eight slot, four pile platform to develop its Neptunite prospect on West Cameron Block 196 in 60 ft of water about 35 miles off Cameron Parish, La.

  • Amerada Hess Corp. and partner Oryx Energy Co. will install a 12 slot, four pile platform in 304 ft of water to produce gas from Mustang Island Blocks A112, A121, and A122 about 65 miles east of Corpus Christi.

  • Weeks Exploration Co., Houston, a subsidiary of Peko Oil Ltd., Pymble, N.S.W., Australia; and Neste Oy, Espoo, Finland, are about to begin production on State Tract 60S off Texas.

TEXACO'S PLAN

The Texaco platform will be used to produce the 2 and 3 West Cameron 196 exploration wells. The 3 West Cameron 196, drilled early last year, flowed 15.8 MMcfd of gas and 132 b/d of condensate from two Miocene sands at about 11,500 ft.

The 3 West Cameron 196, which confirmed the 2 West Cameron 196 discovery, cut 78 net ft of gas pay.

"Texaco anticipates producing gas at a combined rate of about 30 MMcfd of gas from the two wells when the platform is installed in April," said Douglas K. Carriger, division manager of off shore production for Texaco's eastern exploration and producing region.

Exploratory and development drilling is planned from the platform.

Texaco, operator, holds a 33.33% interest in the block. The remaining interest is held by a unit of Unocal Corp.

AMERADA HESS-ORYX

Amerada Hess expects initial production from its $20 million project to be 25-30 MMcfd, scheduled to begin during second quarter 1991.

Peak production is estimated at 40 MMcfd. Four exploratory wells, all encountering gas pays, have been drilled and suspended from a template location near the intersection of the three blocks.

Capital expenditures will cover platform fabrication and installation, laying of a 12,500 ft pipeline and its connection to a gas processing unit on adjacent Mustang Island Block A111, engineering and project development work, and completion of the four wells. Amerada Hess, operator, holds an 82% interest in the blocks, acquired from Transco Exploration Partners in 1989. Oryx owns the remaining interest, acquired from Enron Oil & Gas Co. in 1989.

INTERNATIONAL COMBINE

In the Weeks-Neste project, a six pile production platform being refurbished at a Houma, La., shipyard is to be set in 24 ft of water on the tract in time for production of about 1,000 b/d of oil and 10 MMcfd of gas to begin in May.

Production is scheduled to grow to 1,500 b/d and 15-18 MMcfd.

Weeks estimates reserves at 6 million bbl of oil and 28 bcf of gas. The accumulation occurs in a faulted anticline covering most of four 640 acre state tracts, with the productive area from multiple sands estimated to cover 700-1,000 acres.

To date two wells have been completed for production, one is awaiting completion, one is drilling, and four more development wells are planned. Wells have produced as much as 504 b/d of oil and 3.1 MMcfd of gas.

The 1 State Tract 60S Lower Miocene discovery well, drilled last year, flowed 1.1 MMcfd of gas and 18 b/d of condensate from perforations at 8,436-51 ft and 3.1 MMcfd of gas and 35 b/d of condensate from perforations at 8,263-90 ft (OGJ, July 10, 1989, p. 28) .

Weeks, operator, and Neste each own a 50% working interest in the discovery, along with a total of six 640 acre surrounding state tracts and one 1,440 acre state tract south of the discovery.

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