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Neptune coughs up more pay, unit partners consider their options
Ray Tyson Petroleum News Houston Correspondent
Results from the latest appraisal well at the Neptune prospect confirms what is looking more and more like another commercial oil discovery in the Gulf of Mexico’s prolific Atwater Foldbelt region.
The Neptune-7 well, drilled on Atwater Valley block 618 to a total depth exceeding 18,700 feet, encountered a hydrocarbon column with about 114 feet of net oil pay, operator BHP Billiton said April 20.
More important than its modest pay thickness, Neptune-7 is situated between Neptune-5, which was drilled in 2003 on Atwater Valley block 574 and encountered an impressive 500 feet of net oil pay, and Neptune-3, which was drilled in 2002 on Atwater Valley block 617 and logged 130 feet of net pay.
“The Neptune-7 well confirms information found from previous drilling in the field,” BHP spokesman Patrick Cassidy said. “It’s an encouraging result.” Partners not ready to sanction development Even with the mounting evidence, BHP and its partners are not quite ready to sanction Neptune for commercial development.
“Pre-feasibility studies into the development of the Neptune resources are progressing and expected to be complete by the end of 2004,” BHP said. “Information collected from the (Neptune-7) well will be used to help determine the size of the resource and options for its development.” Neptune-7, 135 miles from the Louisiana Coast, was drilled in nearly 6,260 feet of water using the GlobalSanteFe-operated drillship Explorer.
A key turning point in Neptune came last September when announced results from a pair of sidetracks not only confirmed the 500 feet of net oil pay encountered by Neptune-5 but extended its reach. One of the sidetracks extended by 100 feet the gross 1,200-foot hydrocarbon column down dip of the original well, and the other encountered another 120 feet of net oil column up structure.
The Neptune prospect is in the Atwater Foldbelt region of the Central Gulf of Mexico, the same area that has produced such discoveries as BP’s Mad Dog and Atlantis fields, which are currently in development, and the BHP-operated Shenzi discovery, where appraisal activities are currently under way.
BHP holds a 35 percent working interest in the Neptune Unit. Marathon Oil holds a 30 percent interest, Woodside Energy (USA) a 20 percent interest, and Maxus (US) Exploration Co., a subsidiary of Repsol YPF, a 15 percent interest.
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