British-Borneo hikes Morpeth reserves

British-Borneo Petroleum Syndicate plc, London, has upgraded estimated oil and gas reserves in its Morpeth discovery in the Gulf of Mexico, based on evidence of a well drilled in October 1996. The company said Morpeth reserves are now estimated at 66 million bbl of oil and 67 bcf of gas, a 50% hike from the previous estimate. Upside potential is reckoned to be 92 million bbl of oil equivalent. British-Borneo acquired the Morpeth license from Shell Offshore Inc. and plans to develop the find

Feb. 24, 1997

2 min read

British-Borneo Petroleum Syndicate plc, London, has upgraded estimated oil and gas reserves in its Morpeth discovery in the Gulf of Mexico, based on evidence of a well drilled in October 1996.

The company said Morpeth reserves are now estimated at 66 million bbl of oil and 67 bcf of gas, a 50% hike from the previous estimate. Upside potential is reckoned to be 92 million bbl of oil equivalent.

British-Borneo acquired the Morpeth license from Shell Offshore Inc. and plans to develop the find using a Sea Star design tension leg platform installed in 1,700 ft of water.

In addition, a production test on Morpeth's main P reservoir confirmed greater flow potential than was previously anticipated. Now 35,000 b/d output is expected rather than 25,000 b/d.

Development plans

British-Borneo has begun ordering long-lead time equipment with a view to meeting its production start-up target of summer 1998. Development cost is expected to be $210 million.

Ocean Endeavor semisubmersible rig is under long-term charter to British-Borneo and will be used to drill two additional production wells and a water injector, beginning in July.

The company will also acquire a farmout of Nirvana oil prospect on Mississippi Canyon Blocks 162 and 163, where water depth is 3,300-3,800 ft, operated by BP Exploration & Oil Inc.

British-Borneo will earn a 40% working interest in the discovery by paying "a disproportionate share of costs" on the next Nirvana well, to be spudded by BP shortly using Ocean America drillship.