Gulfsands Petroleum: Gas Discovery in Gulf of Mexico
Gulfsands Petroleum PLC, an oil and gas exploration, development and production company with activities in the USA, Syria and Iraq, announced Monday a gas-well discovery within Northstar Gulfsands LLC, a subsidiary company owned 52.6% by Gulfsands.
The discovery well tested natural gas at a rate of 5.2 million cubic feet of gas per day on a limited choke size. The potential gross reserves for this discovery are approximately 8-10bn cubic feet of natural gas. Production from this discovery should commence within the next 60-90 days.
Chief Executive John Dorrier, said:
"These exploration and re-development programs are providing reserve replacement and growth for Gulfsands' Gulf of Mexico operation at very reasonable cost. While 2003 and 2004 were years in which Northstar Gulfsands made significant acquisitions of reserves, in 2005 we expect to grow mainly through field redevelopment and exploration."
Northstar Gulfsands has participated in two exploration wells in the Gulf of Mexico so far in 2005. The first well was unsuccessful; however the second well, on Eugene Island Block 83, discovered natural gas in Upper Miocene-aged sandstone reservoirs below 13,000 feet of depth. It is currently being completed for production. The wells was drilled by TODCO's jackup, THE 250. Northstar Gulfsands owns a 10% working interest in both the exploration wells.
The unsuccessful well cost approximately $390,000 net to Northstar Gulfsands while the estimated cost for the discovery well on Eugene Island Block 83 including drilling, completion and hook-up is estimated at a total cost of $765,000 net to Northstar Gulfsands.
Northstar Gulfsands commenced drilling a new exploration well in West Delta Block 64 in the Gulf of Mexico in late May and anticipates this well to be completed by the end of June. Northstar Gulfsands has further committed to drill three additional exploration wells in 2005, is reviewing numerous other opportunities for exploration drilling and expects to drill a total of approximately 8 exploration wells in the Gulf of Mexico during 2005.
Since the beginning of 2005, Northstar Gulfsands has participated in 10 recompletions and workovers on wells within existing producing fields in the Gulf of Mexico which has resulted in approximately 3.2bn cubic feet of natural gas equivalent reserve additions net to Northstar Gulfsands (determined by internal engineers) at a cost of approximately $0.50 per million cubic feet of natural gas.
Since the beginning of 2005 net working interest production for Northstar Gulfsands has been at an average daily volume of between 5,000 - 6,000 barrels of oil equivalent per day.
(C) 2005 FWN Financial News. All Rights Reserved
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea