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Energy Resource Technology, a wholly owned subsidiary of Helix Energy Solutions has acquired a 100% working interest in the Typhoon oil field (Green Canyon Blocks 236/237), the Boris oil field (Green Canyon Block 282) and the Little Burn oil field (Green Canyon Block 238) from Chevron U.S.A. Inc., BHP Billiton and Noble Energy, Inc. Prior to the acquisition, the owners of Typhoon were Chevron (50%) and BHP Billiton (50%); the owners of Boris were BHP Billiton (50%), Chevron (25%) and Noble Energy (25%); and the owners of Little Burn were BHP (60%) and Noble Energy (40%). Financial terms of the transaction are confidential. The agreement is subject to MMS approval of a new development plan, which is expected in the next 60 days.
Production from the Typhoon and Boris fields has been shut-in since the Typhoon platform was damaged by Hurricane Rita in September of 2005. Prior to the storm, the combined flow rate from two Typhoon wells and the two Boris wells averaged approximately 13,000 barrels of oil per day and 21 million cubic feet gas per day in the last month of production. A new well, the Typhoon #4, was drilled and flow tested at a rate of 7,700 barrels of oil per day last September. Additionally, the Little Burn development well was drilled by BHP Billiton in 2005 and oil and gas pay was logged. Flow rates from this well are expected to be similar to the Typhoon #4 well. ERT plans to complete this well and tie back both Little Burn and Typhoon #4 to the new production facility once in place. ERT will also have farm-in rights on five near-by blocks where three, moderate to low risk prospects have been identified in the Typhoon mini basin. Following the acquisition of the Typhoon field and MMS approval, the company will rename the field Phoenix.
Owen Kratz, Chairman and Chief Executive Officer of Helix stated, "The acquisition of the Typhoon, Boris and Little Burn fields fits our business model extremely well. The four wells that were flowing have a good production history and the field is well understood. There is immediate upside in the Typhoon GC 237 #4 well and the Little Burn GC 238 #1 ST-3 well, and we expect to bring production from these fields on line mid-2008. We plan to re-develop all of the fields using a re-usable, mobile floating production unit. There is further upside in the form of several exploration prospects that exhibit the same geophysical attributes as those seen in the proven productive areas in the existing field. All of these prospects, if successful, are well within tie-back distance to the floating production unit and some can be drilled with the Company's Q4000 semi-submersible drilling unit. It is also planned that the installation of the new subsea infrastructure will be carried out by multiple vessels from our deepwater fleet".
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