Helix Makes Second Discovery at Garden Banks 506
Helix Energy Solutions' subsidiary, Energy Resource Technology GOM (ERT) has made a second discovery in Garden Banks Block 506, approximately 145 miles offshore from Galveston, Texas, in 2,700 feet of water in the Gulf of Mexico. The 100% owned and operated "Danny" exploratory well has been drilled and wireline logs and repeat formation tests confirm the presence of high quality oil in a single sand body. Preliminary analysis indicates reserve potential of around 50 bcfe.
The well is currently being completed and it is anticipated that the Danny discovery will be developed, in conjunction with the development of the Noonan reservoir, via a subsea tie back system to our 100% owned and operated East Cameron block 381 platform located approximately 31 miles to the north in 370 feet of water. First production from Danny is expected in the second half of 2008.
Martin Ferron, President and Chief Executive Officer of Helix, stated, "When we announced the acquisition of Remington Oil and Gas last year we pointed to the deepwater prospect portfolio as a potential source of significant production and contracting services value. We have now made two very successful steps in unlocking that value, which bodes well for the remaining inventory. With these first two discoveries, the ultimate value created from the deepwater prospect portfolio alone could well exceed the total acquisition price.
"Noonan and Danny will be developed with our marine assets within approximately eighteen months of discovery with a combined finding and development (F&D) cost of less than $2/mcfe. Therefore both the pace and cost of the F&D work are at the leading edge of performance in the deepwater Gulf of Mexico."
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