By OGJ editors
HOUSTON, Feb. 22 -- El Paso Production Co. has discovered gas in the deep shelf of the Gulf of Mexico.
Well 1, drilled to 22,824 ft TMD on West Cameron Block 75, 15 miles off Louisiana in 35 ft of water, logged more than 40 ft of net gas pay in the Lower Miocene.
El Paso Production Holding Co. operates the well and holds a 36% working interest and about 30% net revenue interest. The first 25 bcf of gas equivalent produced from the reservoir qualifies for royalty relief from the US Minerals Management Service. Development opportunities are being evaluated.
El Paso plans to start testing the well in March and expects to have a reserves estimate by yearend. After well tests, El Paso will drill a second deep shelf prospect in an offsetting block, West Cameron 62, in which it will have a 54% working interest. Following the well on West Cameron 62, development on West Cameron 75 may resume.
Production from West Cameron 75 is expected in the fourth quarter of 2005 after facilities are installed.