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Same-Day Analysis
Anadarko Announces Major Discovery in U.S. GOM
Published: 1/29/2010
IHS Global Insight Perspective | |
Significance | Anadarko yesterday announced what it termed a "major" new oil and gas discovery in the U.S. Gulf of Mexico's Keathley Canyon Block 875. |
Implications | Following on from the success of the earlier Lucius discovery, which itself came across 61 metres of net hydrocarbon pay, Anadarko and partners decided to drill an appraisal well under a kilometre to the south. The appraisal well discovered nearly 183 net metres of high-quality hydrocarbon pay in the same two thick subsalt Pliocene and Miocene-age reservoir sands. |
Outlook | By all accounts, Lucius appears to be a find of the first order, and one that continues to demonstrate the high prospectivity of the deepwater Gulf of Mexico; a number of development options are available to Anadarko and partners, but a choice will have to await the outcome of further appraisal tests. |
A "major" new discovery in the deepwater U.S. Gulf of Mexico (GOM) was announced yesterday by Anadarko, one of the world's largest oil and gas independents. The company said that the Lucius sidetrack appraisal well had confirmed nearly 183 net metres of high-quality hydrocarbon pay in two thick subsalt Pliocene and Miocene-age reservoir sands. The appraisal well was drilled in Keathley Canyon Block 875, in 2,164 metres of water, to a total depth of 6,279 metres. Describing the appraisal well as a success, Bob Daniels, Anadarko's senior vice-president of worldwide exploration, said, "we were very encouraged by what we saw in the discovery well, and the results from this appraisal further heighten our enthusiasm. The reservoirs are characterised by excellent porosity and permeability and contain high-quality oil. We anticipate additional appraisal activity in 2010 as we continue to evaluate development options for this very large accumulation." Anadarko is Lucius operator with a 50% stake. Partners Plains Exploration and Marine Energy hold 33.33% and 16.67% respectively.
The appraisal well drilled some 975 metres south of the original Lucius discovery well, which itself discovered over 61 metres of net hydrocarbon pay in the very same Pliocene and Miocene-age sands. It was this find's encouraging potential that prompted Anadarko to explore a little further away—a move that appears to have paid dividends. Anadarko next intends to wrap up operations on this appraisal well and move the Ensco 8500 ultra-deepwater semisubmersible drilling rig north-east to appraise the Heidelberg discovery made early last year in Green Canyon Blocks 856 and 903.
The 5,760-acre lease in Keathley Canyon Block 875 was originally acquired by Kerr-McGee for a bonus bid of US$226,000 during the Western Gulf of Mexico OCS Lease Sale 174 held in August 1999. Kerr-McGee was later bought by Anadarko in mid-2006 for nearly US$20 billion, including debt. Due to the federal government's restructuring of the offshore planning areas, this lease now falls in the Central GOM planning area in the extreme south-east corner of the Keathley Canyon planning area. The lease was nearing the end of its primary term and would have been scheduled to expire on 30 November 2009 were it not for the commencement of drilling operations earlier in the year.
Outlook and Implications
The find announced here continues to demonstrate the high prospectivity of the deepwater U.S. GOM, and reaffirms the continued importance of the GOM more generally. Indeed, the GOM today accounts for a quarter of U.S. oil production and 15% of gas output. As for this find, 183 metres of net high-quality hydrocarbon pay is quite remarkable. In terms of potential development options for Lucius, Anadarko may look towards subsea tiebacks to the Red Hawk cell spar located in Garden Banks Block 876, some 112 km to the north-north-west. This floating production facility is the world's first cell spar system and involves a 7,200-tonne hull capable of accommodating a 3,600-tonne topside payload. The system is capable of producing up to 300 mmcf/d of natural gas—somewhat more than the 120 mmcf/d of peak gas output expected from the Red Hawk field itself. On the other hand, with suggestions that the Lucius find could be on the order of at least 250 million boe, accounting for around a tenth of Anadarko's present global reserves, its sheer size could mean that the company and partners decide on a dedicated production platform. Anadarko and its partners still have to carry out further tests to delineate the find, determine how much resource is in place, how much of it is potentially extractable, and in what volumes, but there is little doubt that the discovery opens 2010 in the best possible way.Most Viewed Articles
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