Pogo Discovers Natural Gas Offshore and in South Texas

Ewing Bank OCS, Gulf of Mexico
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Pogo Producing Company has discovered commercial accumulations of hydrocarbons in its 100%-owned Ewing Bank Block 948 on the Outer Continental Shelf of the Gulf of Mexico. The 948 No. 1 well is located in 725 feet of water and was drilled by Noble Drilling's semisub, Noble Therald Martin. Extensive sidewall coring and logging confirms the presence of 100 feet of net natural gas and condensate pay with average porosity calculations better than 26%, and excellent permeability of roughly 500 millidarcies. The vast majority of this Pleistocene Angulogenrina-B pay is in a 200-foot laminated sand interval found between 13,710 feet and 13,910 feet measured depth. Sidetracking operations are now underway which will be expected to yield the optimum take-point for this discovery structure. A subsea completion will be utilized, taking production to a nearby host platform by the first half of 2006.

This OCS discovery leaves two more wells still being drilled in Pogo's previously announced six-pack of OCS exploratory wells, the Eugene Island Block 256 and the Ewing Bank Blocks 906/950 wells. When results of these two wells are available, they will be disclosed.

In south Texas, Pogo, as operator and 47% owner of a prospective 3,000-acre Duval County, South Rosita leasehold, has completed flow-testing its new exploratory well, the #1 Hoffman 116. The 15,300 feet deep well encountered a Wilcox sandstone horizon near 13,800 feet subsurface. It was perforated and fracture stimulated across a 100 feet thick interval, and tested at a rate of 3.7 million cubic feet per day (mmcf/d) with a flowing tubing pressure of 8,400 pounds per square inch (psi). A second Wilcox interval below 13,400 feet was perforated and fracture stimulated over a span of 50 feet, testing at a rate of 5.5 mmcf/d with a flowing pressure of 9,400 psi. Production equipment is being ordered that will allow the well to produce at rates of up to 10 mmcf/d. The two gas reservoirs are expected to be commingled in order to put the well on production within about 90 days. Pogo and its partners now anticipate spudding a delineation well in this same area during the second quarter of this year. Pogo's partners include, among others, LMP Exploration Holdings, LP, with a 34% working interest.


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