At the East Buck Point prospect in Vermilion Parish, Louisiana, the Company has temporarily abandoned the State Lease 17826 #1 well pending evaluation of a future sidetrack. EPL had earlier announced that the primary target of the well was dry, but that the Company and its partners would attempt to complete the well in a secondary objective. During completion operations, a casing failure occurred and the Company and its partners determined that further investment in the completion attempt was not justified. EPL was the operator of the completion attempt with a 36% working interest, and the Company expects to recognize approximately $2 million in dry hole expense in the third quarter associated with this well.
The Company also determined that the East Cameron 43 #1 exploratory well did not encounter commercial quantities of hydrocarbons. EPL is the operator of the well, which was drilled directionally to a vertical depth of 12,900 feet (14,270 feet measured depth), and holds a 43.75% working interest. Mariner Energy, Inc. holds a 43.75% working interest and Vintage Petroleum Inc. (NYSE: VPI) holds the remaining 12.5% working interest. The Company is currently suspending the well pending evaluation of sidetrack opportunities and expects to recognize approximately $2.2 million in dry hole expense in the third quarter associated with the well.
At West Cameron 204, the #1 exploratory well was a dry hole. The well was drilled directionally to a total depth of 8,742 feet (10,092 feet measured depth) and penetrated the primary objective, but the formation did not contain hydrocarbons. EPL holds a 50% working interest in the well, while Mariner Energy, Inc., the operator, holds the remaining 50% working interest. The well is currently being plugged and abandoned, and EPL expects to recognize dry hole expense of approximately $1.2 million in the third quarter for the well.
At Matagorda Island 639, the #1 exploratory well has penetrated a number of apparent pay sands, and EPL, the operator, is currently suspending the well in preparation for a future sidetrack to test deeper objectives. After suspending the well, the Company plans to skid the rig and spud a follow-up exploratory well on Matagorda Island 640. EPL holds a 50% working interest in the well and Vintage Petroleum Inc. (NYSE: VPI) holds a 25% interest.
EPL currently has exploratory operations underway in two additional locations: South Timbalier 46 #1 (100% working interest) and South Marsh Island 192 #A-2 (17% working interest). At South Timbalier 41 #3 (60% working interest), the Company has temporarily suspended the well after encountering mechanical difficulties and plans to re-enter the well later in the year.
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