OPERATORS LOG GULF OF MEXICO E&D PROGRESS

A number of oil and gas companies are marking progress in exploration and development in the Gulf of Mexico.

Among recent action:

• FINA Inc., Dallas, and partners tested a significant natural gas fault block discovery in Vermilion Block 16 field off Louisiana.

• A group led by Seagull Energy Corp. expects to install about mid-1992 a 100 MMcfd production platform on Brazos Block 397 in about 80 ft of water 22 miles south of Freeport, Tex.

• A group led by Marathon Oil Co. expects to begin producing oil and gas by mid-1992 from wells on South Pass Blocks 86 and 89 about 12 miles off Louisiana.

• Nerco Oil & Gas Inc. and CNG Producing Co. started gas production from a platform in West Cameron Block 554 field

• Nerco and AGIP Petroleum Co. drilled a successful delineation well in Vermilion Block 395, near where it plans to install a platform next month.

FINA STRIKE

FINA 8 State Lease 3762 flowed 12.4 MMcfd of gas and 79 b/d of condensate through a 14/64 in. choke with 9,699 psi flowing tubing pressure from Miocene at 16,196-292 ft.

In addition to the discovery pay sand, the well also logged more than 1 00 ft of known Miocene pay at about 12,000 ft. FINA completed the well and is laying a sales pipeline.

Vermilion Block 16 field, covering about 8,200 acres, has produced more than 295 bcf of gas and 14.6 million bbl of oil since its discovery in 1962. Production declined dramatically in recent years, but the joint venture partners acquired interests in the field during the mid-1980s with an eye to proving more reserves. That led to extensive geological, geophysical, and engineering studies of the field area to support a drilling program.

The fault block discovery is the first well in that program, and FINA has spudded a second.

Interests are held by BHP Petroleum (Americas) Inc. 40.1821%, operator FINA Oil & Chemical Co. 36.3378%, Paramount Petroleum Co. Inc. 22.2222%, and Knob Hill Oil & Gas Co. Inc. 1.2579%. In support of drilling the well, CNG Producing Co. and Murphy Exploration & Production Co. farmed out their interest to FINA and BHP. After payout, CNG and Murphy each will have a 5% back-in working interest, leaving FINA's interest at 31-589% and BHP's at 34-9309%. Other partners' working interests won't change.

SEAGULL PROJECTS

Production will begin in third quarter 1992 from Seagull operated wells on Brazos Blocks 396 and 397. Seagull operated wells on Brazos Blocks 417, 431, and 432 also could produce to the platform.

Wells in the development project will produce in less than 200 ft of water from Miocene sands at depths of less than 1 0,000 ft.

With 40% interest, Seagull Energy E&P Inc., Houston, is operator of Brazos Blocks 396 and 397. The company is operator and has similar interests in Blocks 416, 431, and 432.

Ashland Oil Inc. unit Ashland Exploration Inc., Houston, and Southwestern Energy Co. unit Energy Production Co., Oklahoma City, each has 25% interest in Brazos 396 and 397 and Hardy Oil & Gas p[c unit Hardy Oil & Gas U.S.A. Inc., Houston, holds 10%.

Earlier this month, Seagull reported its 1 OCS-G-10201 on Brazos Block 396 flowed 8.4 MMcfd of gas through a 30/64 in. choke with 2,085 psi flowing tubing pressure from pay at a measured depth of 8,398-8,478 ft. The discovery is in 78 ft of water about 25 miles off Freeport.

With 1 OCS-G-10201 on Brazos 396, Seagull notched its seventh successful Gulf of Mexico exploratory test in 11 attempts this year. During 1991, the company has recorded six discoveries in 10 tries in Galveston and Brazos federal planning areas.

Last March, Seagull's 1 OCS-G-9012 wildcat on Brazos 397 flowed 12.5 MMcfd of gas through a 112 in. choke with 2,216 psi flowing tubing pressure from perforations at 6,910-62 ft (OGJ, Mar. 11, p. 44).

Seagull drilled one successful well on Brazos 396, two on 397, one on 416, and two on 431. Currently, the company is drilling a well on Brazos 432.

MARATHON PROJECT

Initial production in the Marathon group project will come from four wells, three on South Pass Block 86 and one on Block 89 by way of a modified 20 slot template on Block 86.

Marathon plans in first quarter 1992 to install Platform C on South Pass Block 86. One or two more wells could be drilled from the $50 million, eight pile platform during 1992 to targets under Block 89.

Marathon's 89-15 well, drilled from a surface location on South Pass Block 86, in September cut 300 ft of pay at a measured depth of 16,808-17,646 ft on South Pass Block 89. Total vertical depth was about 17,000 ft.

The first well drilled in the project, 86-1, in October 1988 flowed at a rate of 9.18 MMcfd of gas and 1,266 b/d of condensate. In May 1990, 86-2 well flowed 3,744 b/d of oil and 4.29 MMcfd of gas from the same sand as 86-1 and a deeper formation. The project's third well, 86-3, encountered the same two sands and a third and was suspended pending installation of Platform C.

Operator Marathon, Amerada Hess Corp., Louisiana Land & Exploration Co., and OKC Ltd. Partnership, Dallas, each owns 25% interest in the development.

NERCO PROJECTS

Nerco started flow at an initial rate of 12 MMcfd from two wells on a four pile platform in 198 ft of water 140 miles offshore.

The company expects production from the two wells will build to 50 MMcfd within the next few weeks. Plans call for additional delineation and exploratory drilling from the platform in 1992.

West Cameron Block 554 field produces from multiple Pleistocene pays at a depth of about 13,500 ft.

The $9.5 million platform, with a design capacity of 100 MMcfd, was completed in 11 months using an existing deck and production module installed on a new jacket.

Meanwhile, Nerco-AGIP 1 Vermilion Block 395 cut more than 400 ft of net pay in five Pleistocene zones. It was drilled at a hole angle of 50 in 419 ft of water 145 miles offshore.

Nerco expects commercial development will be justified in light of results from the latest well and previous wells drilled on the block. It has begun engineering on a three well unmanned platform to develop Vermilion Block 395.

Nerco and AGIP also plan to install a four pile platform in nearby Vermilion Block 404-412 in November, with production scheduled to begin in early 1992.

The two companies each own a 50% working interest in Block 395 and the 404/412 complex. Block 395 was purchased in federal lease Sale 123 for $11.2 million.

Nerco Oil & Gas, Vancouver, Wash., is a unit of Nerco Inc., Portland, Ore. CNG Producing is a unit of Consolidated Natural Gas Co., Pittsburgh. AGIP Petroleum is a U.S. unit of Italy's state owned AGIP SpA based in Houston.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.