Chevron’s ultra-deepwater Toledo prospect to see first well in fourth quarter

ChevronTexaco plans to drill an initial exploration well in the 2003 fourth quarter on the Toledo prospect in ultra-deepwater Gulf of Mexico, Toledo partner Devon Energy said Sept. 9.

The closely watched prospect, located in nearly 10,000 feet of water on Alaminos Canyon Block 951, is on trend with Shell's Great White and Unocal's Trident discoveries and may provide additional reserves to justify a central production facility or other joint development, analysts said.

Toledo could hold 150 million barrels of oil equivalent with an upside potential of 275 million barrels of equivalent, Devon said. The prospect has a four-way closure, the company said, and the target is the Oligocene-Paleocene horizon. Projected total well depth, including the water column, is 24,000 feet. Devon estimated well costs at about $38 million.