A Helix Energy Solutions subsidiary has acquired a 100% working interest in the Typhoon, Boris and Little Burn oil and gas fields located in the Green Canyon blocks of the Gulf of Mexico from Chevron U.S.A. Inc., BHP Billiton and Noble Energy Inc. for an undisclosed amount. The massive Typhoon tension leg platform, which will be rebuilt by Helix subsidiary Energy Resource Technology Inc. (ERT), has been shut-in since before it was turned upside down during Hurricane Rita last September (see Daily GPI, Sept. 27, 2005).

Typhoon ramped up in 2001 and is jointly owned by Chevron and BHP. BHP owns 50% of Boris, and Chevron and Noble each hold a 25% stake. Little Burn is owned by BHP (60%) and Noble (40%). The sales agreement is expected to be approved by the U.S. Minerals Management Service (MMS).

Prior to Rita, the combined flow rate from two Typhoon wells and the two Boris wells averaged approximately 13,000 bbl/d of oil and 21 MMcf/d of natural gas. A new well, the Typhoon #4, was drilled and flow tested at a rate of 7,700 bbl/d last September. Additionally, the Little Burn development well was drilled by BHP in 2005 and oil and gas pay was logged. Flow rates from the Little Burn well are expected to be similar to the Typhoon #4 well. ERT plans to complete this well and tie back both Little Burn and Typhoon #4 to the new production facility once in place.

ERT will also have farm-in rights on five near-by blocks where three, “moderate to low-risk prospects” have been identified in the Typhoon mini basin. Following the acquisition of the Typhoon field and MMS approval, the company will rename the field Phoenix.

“The acquisition of the Typhoon, Boris and Little Burn fields fits our business model extremely well,” said Helix CEO Owen Kratz. “The four wells that were flowing have a good production history, and the field is well understood. There is immediate upside in the Typhoon GC 237 #4 well and the Little Burn GC 238 #1 ST-3 well, and we expect to bring production from these fields on line mid-2008. We plan to redevelop all of the fields using a reusable, mobile floating production unit.

“There is further upside in the form of several exploration prospects that exhibit the same geophysical attributes as those seen in the proven productive areas in the existing field,” said Kratz. “All of these prospects, if successful, are well within tie-back distance to the floating production unit and some can be drilled with the company’s Q4000 semi-submersible drilling unit. It is also planned that the installation of the new subsea infrastructure will be carried out by multiple vessels from our deepwater fleet.”

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