LLOG Starts Production From Gulf of Mexico Deepwater Field

U.S. oil and gas company LLOG Exploration has begun production from its Spruance Field which is in Ewing Bank Blocks 877 and 921 in the Gulf of Mexico.

The two-well subsea development is producing, in combination, approximately 16,000 barrels of oil per day and 13 million cubic feet of gas per day via a 14-mile subsea tieback to the EnVen-operated Lobster platform in EW 873. First production was achieved less than three years after the initial exploratory discovery well was drilled.

The Spruance Field was initially discovered by LLOG and its partners in mid-2019 via a subsalt exploratory well, the EW 877 #1, which was drilled in 1,570 feet of water to a total depth of 17,000 feet and logged approximately 150 net feet of oil pay in multiple high-quality Miocene sands.

A second well, the EW 921 #1, was drilled from the same surface location as the discovery well to a total depth of 16,600 feet in early October 2020. The well successfully delineated the main field pays and logged additional oil pay in the exploratory portion of the well, finding a total of over 200 net feet of oil.

“We are pleased to announce first oil from the Spruance field, which leverages existing infrastructure and LLOG’s operational capabilities to bring on meaningful production safely. By remaining active throughout commodity price cycles and continuing to deliver world-class results, we are seeing significant production growth in a higher pricing environment.

“We are executing our strategy of developing deepwater GOM projects in areas that have been prolific in the past and that we understand very well. We are excited about our future as we are in various stages of development for multiple discoveries that will continue to help us create value in the deepwater GOM,” Philip LeJeune, President and CEO of LLOG, said.

LLOG is the operator of the Spruance Field and owns a 22.64 percent working interest. Its partners are Ridgewood Energy, (23.89%), EnVen (13.5%), Beacon Asset Holdings (11.61%), Houston Energy (11.2%), Red Willow (11.15%), and CL&F (6%).

It is worth reminding that LLOG and its partners signed a production handling agreement (PHA) for the processing of Spruance reserves via a subsea tieback to the Lobster platform back in July 2020. Lobster is located some 130 miles south of New Orleans in 775 feet of water.

To contact the author, email bojan.lepic@rigzone.com