PanCanadian Gulf Find Similar to Auger
PanCanadian Petroleum subsidiary PanCanadian Gulf of Mexico
Inc., made a deep-water oil and gas discovery in the Gulf of Mexico
that it likened to Shell's prolific Auger Field. The Llano
discovery well, in Garden Banks Block 386 about 137 miles offshore
Louisiana, drilled to a record depth for the Gulf of 27,864 feet.
The sands at Llano correlate closely to similar sands
encountered by Shell Deepwater Development in the Auger Field, less
than 15 miles to the southwest, containing a reported 220 million
barrels of oil equivalent reserves. Auger has reported reserves of
220 million Boe with production of 100,000 barrels of oil and 300
MMcf/d of gas.
"This sets the stage for additional drilling on the significant
lands we hold in the deepwater," said Gerry Macey, PanCanadian
senior vice president for exploration. "This well proved to be
highly challenging and has stretched the envelope of drilling in
the Gulf of Mexico's deepwater. It opens a new exploration and
development frontier for PanCanadian."
The drilling of Llano, in about 2,700 feet of water, initially
reached a depth of 25,340 feet when drilling was suspended due to
rig limitations. In April, the larger-capacity Sedco Omega rig
resumed drilling to make Llano the deepest well drilled in the Gulf
to date. The depth of the pay intervals also makes Llano the
deepest hydrocarbons discovered in the Gulf.
Currently the well is undergoing final evaluation before casing,
and partners are investigating appraisal and production scenarios.
An appraisal well on the Llano prospect is planned for later this
year. PanCanadian holds a 20% interest in this discovery and 20% to
25% working interest in three additional blocks adjacent to Llano.
The other partners in the Llano well are the operator, EEX Corp. of
Houston with 30%, Enterprise Oil of London with 30%, and Mobil
Corp. of Fairfax, VA, with 20%.
Core samples, pressures and fluid samples at depth will be
captured, in addition to electric logs, and will be used to
evaluate the feasibility of early production through tie-back
options to EEX's Cooper Facility on Garden Banks Block 388
concurrently with evaluations for stand-alone production
The Cooper facility can handle 120 MMcf/d of gas and 40,000 b/d
of crude. EEX spokesman John MacDonald said the facility's capacity
could be expanded by removal of a drilling rig and addition of
processing infrastructure. This would add about 30% to its
MacDonald said the first appraisal well could be finished by the
end of the year and a decision on whether to make an early tie-back
to Cooper won't be made until sometime in the first half of next
year. The company might opt to tie-back one or two appraisal wells
to Cooper to generate early cash flow before a stand-alone
production facility is installed. Gas leaving the cooper facility
flows on an EEX line which is connected to a shallow water facility
at Eugene Island.
Joe Fisher, Houston
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