K2 field find proved in deepwater Gulf of Mexico

A confirmation well that Agip Petroleum Co. spudded in April in K2 field—on Green Canyon Block 562 in the Gulf of Mexico—has increased the field's estimated reserves to more than 100 million bbl of oil, Agip said, enabling the owners to start production in 2004. The field is 180 miles south of New Orleans.

Sep 4th, 2002

By OGJ editors

HOUSTON, Sept. 3 -- A confirmation well that Agip Petroleum Co. spudded in April in K2 field—on Green Canyon Block 562 in the Gulf of Mexico—has increased the field's estimated reserves to more than 100 million bbl of oil, Agip said, enabling the owners to start production in 2004. The field is 180 miles south of New Orleans.

The appraisal well is in 3,900 ft of water and was drilled in an untested fault block to 25,700 ft TD, encountering a total of 339 ft of oil pay in three sands.

The first discovery well, K2-1 and sidetrack, about 4,000 ft away, had been drilled by Conoco Inc. (now ConocoPhillips) on the same block in May 1999. Conoco had developed a technique, patented last year, to improve exploration results in areas having subsalt provinces such as Green Canyon (OGJ, Nov. 26, 2001, p. 40). K2 lies beneath the Sigsbee Salt Canopy. However K2-1 encountered only one zone with about 60 ft. of net pay, leading Conoco to assess the original discovery at less than 100 million boe (OGJ, Nov. 5, 2001, p. 80).

Anadarko Petroleum Corp., which holds a 52.5% working interest in the project from a 2001 purchase from BP PLC, announced the appraisal find today, saying "the well results from this discovery extend the limit of proven oil both laterally and downdip on the K2 structure."

Other K2 field partners are operator Agip—the US subsidiary of ENI SPA—18.2%; Conoco 16.8%; and Unocal Corp. 12.5%. The partners plan additional appraisal drilling on the field for 2003.

"Our (Anadarko's) first deepwater discovery at Marco Polo (6 miles from K2) is being developed," said John Seitz, Anadarko president and chief executive officer. "And we have several other deepwater prospects that will be drilled as we evaluate our deepwater subsalt exploration inventory," he added.

Marco Polo
Marco Polo, announced in 2000, is nearby in Green Canyon Block 608. Its platform is under construction and scheduled for installation in third quarter 2003. Four development wells were drilled this year.

Under terms of a project agreement, El Paso Energy Partners and Cal Dive International will construct and jointly own the platform, and Anadarko will be operator and have firm capacity of 50,000 b/d of oil and 150 MMcfd of natural gas. The remaining capacity will be available for additional production or to third parties.

Production capacity will be 100,000 b/d of oil and 250 MMcfd of natural gas. First production is targeted for first quarter 2004, Anadarko said.

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