LLOG Exploration Co. LLC, Covington, La., has entered agreements to sell partial interest in certain Gulf of Mexico oil and gas assets to Australia-based Karoon Energy Ltd. for $720 million.
LLOG Exploration Offshore LLC and LLOG Omega Holdings LLC will divest to Karoon a 30% interest in Who Dat and Dome Patrol fields and associated infrastructure, including the Who Dat floating production system (FPS), plus a 16% interest in Abilene field, Karoon Energy said in an Australian Securities Exchange release Nov. 16.
Karoon also will acquire various interests in adjacent acreage which contains exploration opportunities Who Dat East (40%), Who Dat West (35%), and Who Dat South (30%).
Who Dat field
Who Dat field lies on the Mississippi Canyon blocks offshore Louisiana beneath an average water depth of 3,200 ft, with ten stacked reservoirs between 10,000-17,000 ft in Pliocene and Upper Miocene Age zones. Current production is about 42,000 boe/d gross as of October 2023. Natural decline has been offset by an in-field development program. Recently, two wells and a subsea pump were brought online, adding about 10,000 boe/d (gross) to production, with an additional 6,000-8,000 boe/d (gross) expected to be added in 2024 from two additional wells, Karoon said.
Subject to joint venture approvals, an appraisal well on the Who Dat East oil accumulation, discovered in 2011, is expected to occur in second-quarter 2024. The discovery, which lies 27 km east of the Who Dat FPS, holds gross 2C contingent resources of 17 MMboe and unrisked 2U prospective resources of 34 MMboe, Karoon said.
Who Dat South and Who Dat West contain combined unrisked gross prospective resources of 108 MMboe. Exploration wells are scheduled to be drilled on area prospects in second- and third-quarter 2024, respectively, subject to JV approvals.
The acquired assets are expected to add about 4-4.5 MMboe to Karoon’s 2024 production on a net revenue interest basis, taking the company’s total proforma 2024 production to 12-14.5 MMboe, Karoon said.
Following the deal’s closing, which is subject to customary conditions, LLOG’s interests in Who Dat and Dome Patrol will reduce to 45%. Westlawn Group holds the remaining 25%.