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Shell's Brutus/Glider Properties in GOM Sold to EnVen for $425M

Royal Dutch Shell plc agreed Monday to take $425 million from EnVen Energy Corp. for the Brutus platform and Glider production system in the deepwater Gulf of Mexico (GOM).

The assets, about 165 miles southwest of New Orleans, have combined output currently of 25,000 boe/d.

Houston-based Shell Offshore Inc. said the transaction, set to close in October, includes properties in Green Canyon Blocks 114, 158, 2020 and 248. Included in the agreement is the Brutus tension leg platform (TLP), as well as the Glider subsea production system, and oil and natural gas lateral pipelines used to evacuate production from the TLP.

Brutus, Shell's fifth TLP in the GOM, ramped up in 2001 and was the producer's first deepwater platform specifically designed to serve as a hub for future subsea developments (see Daily GPIAug. 16, 2001). The average production rate from the first well initially was 25,000 b/d of oil and 35 MMcf/d of natural gas. Gross ultimate recovery was estimated then at about 250 million boe.

Following a discharge of 2,012 bbl of an oil/water discharge near the Glider field in May, close to 150 people conducted skimming operations for Shell and the U.S. Coast Guard using five vessels. Glider, about 100 miles south of Port Fourchon, LA, is a group of four subsea wells on Green Canyon Block 248. Production from the four wells flows through a subsea manifold to Brutus in 2,900 feet of water. Brutus resumed production in mid-May from Shell's direct vertical access wells.

Houston-based EnVen was formed last year after securing about $24.49 million in equity financing, according to a U.S. Securities and Exchange Commission Form D filing. Chairman and CEO is Steve Weyel previously was COO of Energy XXI (Bermuda) Ltd., which he co-founded. Weyel also co-founded EnerVen LLC in 2001, serving as its COO and president until mid-2005. EnVen CFO is John P. Wilkirson, formerly CFO of GOM producer Cobalt International Energy.

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