|
K2 reserves may exceed estimates Official number 100 million BOE; partners still looking for field limits Petroleum News Houston Staff
Anadarko Petroleum says the latest appraisal well at K2 in the Gulf of Mexico indicates the deepwater prospect could be larger than the company’s initial estimate of 100 million barrels of oil equivalent.
The K2 No. 3 well, drilled in 3,900 feet of water on Green Canyon Block 562 in the Gulf of Mexico, was intended to test the northwestern edge of the field, “but the field extends deeper and father beyond what we had predicted,” Anadarko CEO Robert Allison said May 27.
“In fact, the outermost limits of K2 are still unknown,” he said.
Anadarko said the No. 3 well extended the limit of the proven oil column down dip an additional 800 feet on the K2 structure, and that “the lack of an oil-water contact suggests additional reserve potential.”
Drilled to 27,000 feet Specifically, the appraisal well encountered 208 feet of oil pay in two sands, the company said. The well, located about 180 miles south of New Orleans, Louisiana, was drilled to a total depth of 27,000 feet.
Later this summer, the company said it plans to drill an exploration well on the northern adjacent block, Green Canyon Block 518, in which Anadarko holds a 100 percent working interest.
Anadarko holds a 52.5 percent stake in K2. Agip, the operator, has an 18.2 percent interest, followed by Conoco Phillips with a 16.8 percent interest and Unocal with a 12.5 percent interest.
The K2 partners are expected to make a decision on development plans as early as this summer, with first production anticipated in late 2004 or early 2005, Anadarko said. Options include a separate structure or a tie-back to the nearby Marco Polo facility, which is operated by Anadarko and scheduled to be installed later this year. Marco Polo designed 120,000 barrels per day Anadarko has provided no reserve estimates for Marco Polo. However, the offshore platform is being designed to process 120,000 barrels per day of oil and 300,000 million cubic feet per day of natural gas, the company said.
Marco Polo, located on Green Canyon Block 608, would have “firm capacity” of 50,000 barrels per day of oil and 150,000 million cubic feet per day of gas, Anadarko said. The remaining platform capacity would be available to Anadarko or to third parties that have activity in the area, the company said.
Eastern gulf very prospective, but still remote, wildcat exploration
Meanwhile, Anadarko said its second exploratory well in the remote Eastern Gulf, Hawkeye on Lloyd Ridge Block 360, turned out to be a dry hole.
“The Eastern Gulf of Mexico is some of the most prospective acreage currently available in the U.S.,” Allison said. “But it is still wildcat exploration.”
The first well on Anadarko’s Eastern Gulf schedule was drilled earlier this year at the Jubilee prospect on Atwater Valley Block 349. Jubilee, with estimated reserves of 250-to 300 billion cubic feet of natural gas, could be commercially produced should hub facilities be established in the area, the company said.
Anadarko holds a 100 percent working interest in Jubilee, Hawkeye and 16 additional prospects in the Eastern Gulf. Anadarko is currently drilling its Atlas prospect at Lloyd Ridge Block 50. Atlas is located about 18 miles from Jubilee in more than 8,000 feet of water.
Structural and stratigraphic traps Anadarko said its Eastern Gulf prospects include two different types of plays: structural traps and stratigraphic traps.
“The good news is we’ve found the thick reservoir-quality sands that our seismic models predicted,” Allison said. “But the sands in the stratigraphic targets at Hawkeye were wet, which could not be determined until it was drilled. We’ll use the data gained from these two wells and re-focus our drilling on structural targets similar to the one at Jubilee.”
| 