Energy XXI has provided an operational update for its fiscal first-quarter results for the period ended Sept. 30, 2008.
Energy XXI has become operator of the E.A. McIlhenny #1 well on the Cote de Mer prospect, located in Vermillion Parish, Louisiana. Before being temporarily abandoned ahead of Hurricanes Gustav and Ike, this well was drilled to a depth of 21,504 feet on its way to the proposed depth of 22,000 feet. Operating difficulties were encountered following the barge rig's return on Sept. 18. The well has since been cleaned out to 19,262 feet, and efforts are underway to clean out to 19,800 feet, where the well is expected to be side-tracked. Energy XXI holds a 33 percent working interest (WI) and a 24 percent net revenue interest (NRI).
The Kaplan prospect, being drilled with the Green & Broussard #1ST2 well in Vermillion Parish, Louisiana, (100 percent WI, 74 percent NRI), was drilled to 18,400 feet, logging a tight interval over the objective section, indicating that the sand was penetrated on the edge of the channel. The well was sidetracked at 14,674 feet and is currently drilling at 16,897 feet toward a revised bottom-hole location within the channel identified on seismic at 18,100 feet.
The Blackbeard West prospect (20 percent WI, 16 percent NRI) has been announced as a potential major discovery and will be completed and tested. The prospect, drilled with the South Timbalier Block 168 No. 1 exploratory well in 70 feet of water offshore Louisiana, was reentered on March 18, 2008, and has been drilled to 32,997 feet. Logs indicate four potential hydrocarbon-bearing zones below 30,067 feet that require further evaluation. The well will be temporarily abandoned while the necessary long-lead-time completion equipment is procured for this high-pressure test. The well is located on the top of the targeted structure. Seismic data on the prospect indicates the potential for significantly thicker sands on the flanks of the structure as confirmed in several major deepwater discoveries.
Based on information obtained to date in the South Timbalier Block 168 well, Energy XXI believes additional drilling on the flanks could result in significant reserves potential. Energy XXI's investment in the South Timbalier Block 168 well has totaled $23 million. Energy XXI will continue to review additional drilling opportunities on the flanks of the structure and on other acreage it holds in the ultra-deep trend.
Central Gulf Highlights
South Timbalier 21 (100% WI/83.33% NRI)
During the fiscal first quarter, South Timbalier 21 net production averaged 4,650 BOE/d as the company continued to bring disrupted production back online from Hurricanes Gustav and Ike. Recent activity includes:
East Cameron 334/335
The EC 335 B-10 well (51% WI/43% NRI) was recompleted to the HA sand at 11,408 feet and tested at 9.1 million cubic feet per day of natural gas.
Eastern Gulf Highlights
The Eastern Gulf properties averaged 4,890 BOE/d in the fiscal first quarter, down from the 2008 fiscal fourth-quarter volumes of 5,500 BOE/d due to hurricane shut-ins. Recent highlights include:
Onshore/Gulf Coast Highlights
Most Popular Articles
From the Career Center
Jobs that may interest you