Rowan Mississippi Jackup Commences Drilling at GOM's Ammazzo Prospect

Energy XXI reported that the E.A. McIlhenny #1 well on the Cote de Mer prospect, located in Vermillion Parish, Louisiana, has been successfully cleaned out to 19,700 feet and is being side-tracked to resume drilling to the proposed depth of 22,000 feet. Before being temporarily abandoned ahead of Hurricanes Gustav and Ike and subsequently encountering operating difficulties, this well was drilled to a depth of 21,504 feet. Energy XXI holds a 33 percent working interest (WI) and a 24 percent net revenue interest (NRI).

The Kaplan prospect (100 percent WI, 74 percent NRI), drilled with the Green & Broussard #1ST4 well in Vermillion Parish, Louisiana, has reached its target depth of 18,605 feet. The well encountered 34 feet of net oil pay in the Marg Howei sand from 15,980 feet to 16,040 feet, which is expected to be completed and placed on production in March. The primary Camerina B target sand was deemed non-commercial.

The Ammazzo prospect (16 percent WI, 13 percent NRI) has commenced drilling operations using the new Rowan Mississippi 240C class jackup rig. Located in 25 feet of water at South Marsh Island block 251, the prospect has a proposed total depth of 24,500 feet, targeting one of the largest undrilled deep structures below 15,000 feet on the shelf of the Gulf of Mexico. It is positioned on the southern portion of the structural ridge extending from the Flatrock and JB Mountain discoveries (approximately 16 and 11 miles north-northwest, respectively), where operator McMoRan has proved the existence of productive Rob-L, Operc and Gyro sands in the Middle Miocene. The Ammazzo prospect's multiple targets represent significant exploration potential (500 billion cubic feet of natural gas equivalents to greater than 1 trillion cubic feet), similar to Flatrock and potentially larger.

At the South Timbalier 21 field, the ST 21 #82 ST2 well (100 percent WI, 88 percent NRI) was drilled to its target depth of 12,684 feet, encountering 162 feet of net oil pay in the S-3, S-4A, S-4B, D-2, D-3, D-4, D-7 and D-10 sands between 10,110 and 12,684 feet. The well is being completed and is expected to be placed on production in January.

Adding to the company's recent success at East Cameron 334 (51 percent WI, 43 percent NRI) with the B-10 well recompletion, which tested at 9.1 million cubic feet per day of natural gas, the B-11 well has been worked over and the B-6 well was recompleted to the HA sand. These wells will be tested and placed online when the sales pipeline repairs are completed, expected in December.

In the Apache-operated Golden Meadow field (25 percent WI, 19 percent NRI), a southern extension of the Lake Salvador focus area in Lafourche Parish, Louisiana, the LL&E #233 well was spud Oct. 15 and drilled to target depth of 14,948 feet, logging 21 net feet of natural gas pay in the Pelican sand, 96 net feet of gas pay in the Duval sand and 39 net feet of gas pay in the Dulac sand, encountered between 13,318 and 14,780 feet. The well is expected to be completed and placed on production in February, following completion of the LL&E #236 well.

As previously reported, the nearby LL&E #236 well logged 75 feet of net pay between 12,381 and 12,505 feet in the Tex W3 sand, which appears to be oil bearing. Further drilling to the target depth of 16,325 feet has encountered 126 feet of net natural gas pay between 15,696 and 16,153 feet in the Big Hum sand. The well, which was spud Sept. 5, is expected to be dual completed in both intervals and placed on production in January. Several additional prospects remain in inventory.

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