Petsec Boots Gulf of Mexico Natural Gas Output

Petsec Energy has significantly increased daily gas production from its Gulf of Mexico fields following the successful completion of the two wells at the Vermilion 258 discovery.

Petsec Energy announced today that total net production from its Gulf of Mexico operations had jumped to the current rate of 24.3 million cubic feet of gas equivalent (MMcfe) per day.

The Vermilion 258 field is currently producing at the rate of approximately 19.3 Mmcfe of gas per day, which represents net to Petsec Energy, 16.1 MMcfe of gas per day.

The Vermilion 258 G-1 and G-2 wells drilled in December 2003 and January 2004, discovered an estimated 23 billion cubic feet of recoverable gas.

The G-1 well intersected 27 metres (85 feet) of net gas pay in six sands and the G-2 well intersected 13 metres (42 feet) of net gas pay in three sands. Both wells have been completed and are producing natural gas and some condensate.

Project costs for a production platform, facilities and pipeline with initial capacity of 45 MMcfe of gas per day, and two completed wells, were approximately US$16 million.

Vermilion 258 is located approximately 114 kilometres (70 miles) south of Vermilion Parish, Offshore Louisiana USA in the Gulf of Mexico with a water depth of approximately 42 metres (138 feet).