Devon Energy Contracts Second Deepwater Rig for Gulf of Mexico
The West Sirius is designed to drill to 37,500 feet in up to 10,000 feet of water and capable of drilling any prospect in Devon's deepwater inventory. The rig is currently under construction and is scheduled for delivery from Singapore in the second quarter of 2008.
Prior to entering into the West Sirius contract, Devon entered into a four-year contract on Diamond Offshore's Ocean Endeavor deepwater drilling rig. The Ocean Endeavor is being refurbished in Singapore and is scheduled to arrive in the Gulf of Mexico in the second quarter of 2007. The Ocean Endeavor is capable of drilling to 35,000 feet in 10,000 feet of water.
"This second long-term rig agreement reflects our growing confidence in the value of Devon's deepwater Gulf of Mexico position. Our successful lower Tertiary exploration program, progress toward commercialization and strong prospect inventory present us with an extensive set of deepwater Gulf of Mexico drilling opportunities," said Stephen J. Hadden, senior vice president, exploration and production. "With two deepwater rigs under contract we will have additional capacity and flexibility to test, appraise and develop multiple prospects in the lower Tertiary and Miocene trends."
Lower Tertiary Potential to Drive Deepwater Drilling
Devon has to date made four important discoveries in the Gulf of Mexico's deepwater lower Tertiary trend. The company has recently announced several developments concerning these discoveries.
On September 5, 2006, Devon announced the results of a production test of the Jack #2 well. This test was a significant step forward in determining the commerciality of the Jack discovery and, potentially, other projects in the trend. Jack #2 sustained flow rates of more than 6,000 barrels of oil per day. The tested interval was approximately 40 percent of the total net pay measured in the well. Devon and its co-owners plan to drill another appraisal well on the Jack prospect in 2007. Devon has a 25 percent working interest in Jack.
On August 15, 2006, the company announced plans to conduct additional drilling and commence production from the Cascade discovery in late 2009. Devon also announced that it had increased its working interest in the Cascade Unit from 25 percent to 50 percent.
Additionally, on August 31, 2006, Devon announced a discovery on the Kaskida prospect. Appraisal drilling on Kaskida and on the previously announced St. Malo discovery is also planned. Devon has a 20 percent working interest in Kaskida and a 22.5 percent working interest in St. Malo.
"Our growth strategy in the deepwater Gulf was to build a strong exploration portfolio through lease sales, joint ventures and acquisitions," added Hadden. "Execution of this strategy has resulted in four discoveries and 19 additional lower Tertiary prospects, six of which we operate. We have also identified 16 Miocene prospects, five operated by Devon. These opportunities represent resource potential that could more than double the company's current reserve base."
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- 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
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- 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
- 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
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension