McMoRan adds deep shelf gas-condensate finds

Aug. 11, 2005
McMoRan Exploration Co., New Orleans, has gauged more deep shelf gas-condensate discoveries in the Gulf of Mexico as its production ramps up there.

By OGJ editors
HOUSTON, Aug. 11 -- McMoRan Exploration Co., New Orleans, has gauged more deep shelf gas-condensate discoveries in the Gulf of Mexico as its production ramps up there.

The independent plans to start production in the fourth quarter of 2005 from the King Kong discovery on Vermilion Blocks 16-17. The well, drilled to TD 18,918 ft in 12 ft of water, tested at 20.6 MMcfd of gas and 3,600 b/d of condensate, no water, from 34 net ft of perforations below 15,400 ft. Flowing tubing pressure was 7,400 psi at the end of the test on a 28/64 in. choke, and shut-in tubing pressure was 10,115 psi.

Logs indicated the well cut 150 ft of net pay in 14 hydrocarbon-bearing sands.

McMoRan, operator with 40% working interest, is to spud the King Kong-2 development well updip. To be drilled to 13,750 ft, it will further evaluate sands seen in the discovery well.

The prospect is not related to the deepwater King Kong-Yosemite gas-condensate field, which went on production in 3,700 ft of water in the Green Canyon area in February 2002.

Meanwhile, with remedial problems solved, production from the Hurricane Upthrown discovery well on South Marsh Island 217 climbed to 40 MMcfd and 1,700 b/d of condensate after the operator removed scaling and residue from the pack assembly. The well is to be opened further to 50 MMcfd and 2,150 b/d.

The well, which began producing on Mar. 30, 2005, received royalty relief on the first 5 bcf of production and flowed at 20 MMcfd of gas equivalent in July. It produces through Tiger Shoal field facilities.

Hurricane-2, projected to 16,000 ft in 10 ft of water 3,000 ft northwest of the discovery well, is to spud in the second half of 2005.

Other exploration
Other deep shelf wells in operation or planned in which McMoRan holds interests:

-- West Cameron 43 No. 4 exploratory well, 30 ft of water, TD 18,500 ft, encountered several sands that appear hydrocarbon-bearing, 4,000 ft north of the No. 3 discovery well, which found more than 100 ft of Lower Miocene pay. The lease is eligible for royalty relief.

-- JB Mountain Deep exploratory well, in 10 ft of water on South Marsh Island 224, drilling below 11,100 ft toward PTD 23,000 ft.

-- Long Point exploratory well, in 8 ft of water on Louisiana State Lease 18090, Vermilion Parish, drilling below 11,200 ft, projected TD 20,000 ft.

-- Cane Ridge exploratory well, a land well in Louisiana S.L. 18055, Vermilion Parish, drilling below 8,400 ft, projected TD 16,500 ft.

-- Delmonico exploratory well, in 9 ft of water on Louisiana S.L. 1706 in Lake Sand field, drilling below 19,500 ft toward projected TD 20,000 ft.

-- Point Chevreuil exploratory well, 12 ft of water, Louisiana S.L. 18350, projected TD 17,000 ft, to spud in the third quarter of 2005. Three other prospects are to be spudded by the end of 2005.

-- The Blueberry Hill exploratory well, TD 23,903 ft on Louisiana S.L. 340, 7 miles east of the JB Mountain discovery and 7 miles southeast of the Mound Point Offset discovery, found four potentially productive hydrocarbon sands as indicated on logs. The 20,000-psi completion equipment is to be delivered in early 2006.