Energy XXI Ltd. has a deal with Apache Corp. to explore some salt dome structures on the Outer Continental Shelf in the Gulf of Mexico (GOM).

According to Energy XXI, the area of mutual interest (AMI) includes several salt domes within a 135-block area. In addition, the company has acquired a 25% working interest (WI) in 21 nonproducing primary-term leases with Apache. A wide azimuth seismic program is underway to define the potential of the AMI, covering close to 633,000 acres. No financial details were disclosed.

“This joint venture exemplifies our interest in exploring salt structures where new seismic data, remapping and remodeling could uncover significant hidden hydrocarbons,” Energy XXI CEO John Schiller said. “Our Pendragon exploration well, being drilled in the Vermilion area, is a similar analog.”

At Energy XXI’s South Pass 49 field, a recompletion program continues to the D-65 sand. Well A-7 (56.5% WI) was the first recompletion to come online in December; it now has a stabilized flow rate of 14 MMcf/d gross. Well A-19 (49.4 WI) began flowing earlier this month and is producing 6 MMcf/d and 135 b/d gross of condensate.

“Since the South Pass 49 recompletion program started in October, overall field production has more than doubled,” the Houston operator said.

At West Delta 73 (100% WI), Maroon, which is Energy XXI’s fourth horizontal well in the field, was drilled to 8,281 feet true vertical depth/10,071 feet measured depth, including a 1,200-foot horizontal section. The well is currently testing and under evaluation.

“We continue to grow more confident in the upside of our horizontal oil drilling program,” Schiller said. “As anticipated, our horizontal wells are trending right around our mid- to high-side case, which represents about a five-fold average increase in recoverable oil per completion.”

Energy XXI’s current production is about 46,000 boe/d net. It also has around 5,000 boe/d temporarily offline due to various unrelated issues, bringing total capacity to 51,000 boe/d. Production for the fiscal third quarter ended March 31 is expected to average 44,000 boe/d.

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