Freeport-McMoRan hits oil pay in two gulf development projects

Freeport-McMoRan Oil & Gas, a subsidiary of Freeport-McMoRan Inc., encountered a total of 234 net ft of Miocene oil pay with the Holstein Deep delineation well on Green Canyon Block 643 in the deepwater Gulf of Mexico.

Freeport-McMoRan Oil & Gas, a subsidiary of Freeport-McMoRan Inc., encountered a total of 234 net ft of Miocene oil pay with the Holstein Deep delineation well on Green Canyon Block 643 in the deepwater Gulf of Mexico.

The well, which reached a total depth of 31,100 ft, showed excellent reservoir characteristics and good correlation to the discovery well and previous confirmation sidetrack penetration, the company says.

Production from the planned three-well development program is expected to reach 15,000 boe/d in 2016 and will be tied back to the existing Holstein production facility.

Based on results from the Holstein Deep delineation well, Freeport-McMoRan has increased the net unrisked resource potential of the Holstein Deep field to more than 250 million boe from the previous estimate of 140 million boe. The data also supports the potential for additional development opportunities at Holstein Deep to achieve production of up to 75,000 boe/d by 2020.

The Holstein Deep development, west of the Holstein platform in 3,890 ft of water, was acquired by Freeport-McMoRan in a 2013 lease sale held by the US Bureau of Ocean Energy Management. The company says it has identified additional development opportunities in the Green Canyon area that could be tied back to the Holstein facility.

At the Dorado development project on Viosca Knoll Block 915, the well reached a total depth of 14,600 ft, encountering 245 net feet of Miocene pay with excellent reservoir characteristics and good correlation to offset productive wells, the company says. The development lies in in 3,860 ft of water.

The well is the first of three planned subsea tieback wells to the Marlin facility targeting undrained fault blocks and updip resource potential south of the facility.

Production from the planned three-well Dorado development is expected to reach 15,000 boe/d in 2016 and will be tied back to the existing Marlin production facility, where Freeport-McMoRan owns 100% working interest. The company says it has several development opportunities in the Marlin area that could be tied back to the Marlin facility.

Freeport-McMoRan owns 100% interest in both the Holstein Deep and Dorado development wells. Production from the projects is expected to total 30,000 boe/d in 2016.

The company says it’s now conducting a review of capital expenditures and other costs in response to the recent decline in oil prices, noting that the Holstein Deep and Dorado projects were previously incorporated in the company’s estimates of production and capital expenditures. The review includes evaluation of opportunities to reduce or defer expenditures and potential partnership arrangements.

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