Drilling/Production Pennzoil developments center on gulf

A drilling rig crewman watches as the blowout preventer stack is positioned to drill a wildcat for Pennzoil Co. on West Canmeron Block 580 in the Gulf of Mexico. The well found four gas sands with a combined 375 ft of net pay.

Pennzoil Co., Houston, has begun developing a series of 1995 oil and gas discoveries and field extensions in the Gulf of Mexico.

The company last year replaced 100% of its U.S. production, mostly via projects in the gulf. Pennzoil in 1995 produced 58 million bbl of oil equivalent (BOE) in the U.S. at an average cost of $4.30/bbl.

Worldwide, Pennzoil replaced an estimated 126% of its oil and gas reserves.

At yearend 1995, Pennzoil had 10 rigs under contract in the Gulf of Mexico. Work is under way on development projects expected to boost the company's gulf production by more than 125 MMcfd of gas and nearly 7,000 b/d of liquids by yearend 1996. Here is a summary of what's happening:

Pennzoil is drilling a delineation well to test deeper zones on West Cameron Block 580, where a wildcat last year cut 375 ft of net gas pay in four sands. Partners on the tract are building a platform and plan to start production in the third quarter. With a 75% interest in the development, Pennzoil expects to net more than 70 MMcfd of gas.
Gas flow is to increase in the second quarter more than 35 MMcfd on South Marsh Island Blocks 22, 23, and 35, where Pennzoil last year drilled three successful wells, including two wildcats. Pennzoil owns a 100% interest in the spread.
Pennzoil is following a 1995 discovery based on 3D seismic data on Ship Shoal Block 154 with an eight well program expected to restore output in a field where production had declined to 85 b/d of liquids. Officials expect new production levels to exceed 7,000 b/d of liquids and 18 MMcfd of gas.
Pennzoil acquired the South Marsh Island and Ship Shoal leases from Chevron.
Pennzoil holds a 20% interest in Shell Offshore Inc.'s subsalt oil and gas discovery on Garden Banks Blocks 127 and 128. Partners plan to install a $65 million platform in 625 ft of water to gather and ship gas from the field, where production is to start in 1997 and peak at 250-300 MMcfd in 1998.
Pennzoil holds a 50% interest in a wildcat drilled by Forest Oil Corp. on High Island Block A-274 that logged 124 ft of net gas pay. Partners are studying well data, and Pennzoil will operate any future wells on the tract.

Onshore, Pennzoil expects gas production to start in the second quarter in a new gas play in Tinsley oil and gas field, Yazoo County, Miss. The area lacks gas processing facilities.

Pennzoil holds about 92% interest in its Tinsley prospect area, where it participated in a 1995 discovery well that flowed 8.2 MMcfd of gas and 430 b/d of condensate.