Although our Company’s roots were in the shallow waters of the GOM, we have diversified our asset base over the last decade. Today, we retain a select exploration-focused initiative on the shelf and a balanced program of exploration and development drilling in the deepwater. At year-end 2007, we owned interests in 61 leases in deepwater (approximately 300,000 gross acres).
In the deepwater GOM, we have been active in recent lease sales. We were awarded all of the leases on which we were high bidder during the March 2008 OCS lease sale, including 14 of 23 blocks in the deepwater and five blocks in shallow water. Over the last several years, we have assembled an attractive portfolio of deepwater prospects that will allow us to drill three or four exploratory wells per year over the next several years.
Our production from the GOM in 2008 is expected to be about 17 Bcfe, representing a more than 20% increase over 2007 (after asset sales). The increase related primarily to our Wrigley field development.
In deepwater, our producing fields include: Wrigley, Rigel, Glider and PowerPlay.
Wrigley (MC 506): This is our first operated field in deepwater that we discovered in 2005. Initial production commenced during July 2007. Wrigley is producing approximately 50 MMcfe/d (gross) through a host facility operated by a major oil company. We operate and have a 50% working interest.
Rigel (MC 296): This field began production in 2006 and is a single-well development. It is outside operated, and we own a 25% working interest.
Glider (GC 248): This field began production in 2004. It is outside operated, and we own a 25% working interest in this two-well subsea tieback.
PowerPlay (GB 258): This field commenced production in late June 2008. It is a single well tieback to existing infrastructure and is currently on-line producing more than 8,500 BOEPD (gross). We have a 35% interest in this outside-operated well.
We have three deepwater developments underway with first production late 2009/early 2010.
Gladden: The MC 800#1 updip sidetrack was successful and completed. The well tested 4,600 BOPD and 5.9 MMcf/d. Production will come from the nearby Gomez infrastructure. Newfield has a 47.5% interest.
Anduin West: The Anduin West Prospect, located at Mississippi Canyon 754, found 30 feet of net gas and condensate pay in the first quarter. The well tested 18 MMcf/d and 2,400 BCPD. It is also located near the Gomez facility, which will process production.
Fastball (VK 1003): This will be a subsea tieback to one of several existing fields in the area. We operate Fastball with a 66% working interest.
For a map of our Gulf of Mexico assets, click here.
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