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First eastern Gulf of Mexico deepwater wildcat is dry hole
Petroleum News staff
The first deepwater exploration well to be drilled in the eastern Gulf of Mexico since the region was re-opened to oil and gas leasing in late 2001 is a duster.
Well operator Marathon Oil Corp. and partner Kerr-McGee Corp. independently confirmed March 27 that Barracuda, located in 8,500 feet of water on DeSoto Canyon Block 927, showed no hydrocarbons and was plugged and abandoned.
Moreover, Oklahoma’s Kerr-McGee said it has no immediate plans to participate in two other eastern Gulf prospects it holds 50-50 with operator Marathon, called Raptor and West Raptor.
The Barracuda lease was acquired by Marathon and Kerr-McGee for $1 million in the 1988 eastern Gulf lease sale, but was not spud until January of this year. The company’s exploration plan had called for up to four wells at Barracuda.
The five leases that make up the Raptor and West Raptor prospects, also located in DeSoto Canyon, were acquired by Marathon and Kerr-McGee in the December 2001 Eastern Gulf sale, the first held in the region in 13 years. The companies paid a hefty $34.3 million for the leases and filed an exploration plan calling for up to six exploration wells. Anadarko looking at Hawkeye Meanwhile, Anadarko Petroleum Corp. likely would become the second operator since the area was re-opened to drill a deepwater exploration well in the eastern Gulf, on a four-block prospect called Hawkeye, a spokeswoman for the company said.
She said the rig used on Anadarko’s Jubilee prospect, located in Atwater Valley just outside the western boundary of the Eastern Gulf sale area, was scheduled to move soon to Hawkeye at Lloyd Ridge south of DeSoto Canyon.
The company indicated it could drill additional Eastern Gulf wildcats over the next year or two at prospects identified as Atlas, Spiderman and Mondo. The big Houston independent owns 100 percent of the leases it acquired in Sale 181. That included the $18.3 million it paid for Lloyd Ridge Block 316, one of the highest-bid tracts in the entire sale.
Ocean Energy Inc. (37.5 percent) and partners EOG Resources Inc. (37.5 percent) and Devon Energy Corp. (25 percent) are still awaiting drilling permits for their Tuscany prospect located on DeSoto Canyon blocks 180 and 224, a company spokeswoman said.
“We hope to spud the well as soon as possible after we receive our permits," she said, adding that Ocean also hopes to complete the Tuscany exploration well. Shell awaiting permits Shell also is awaiting government permits for its Shiloh (Block 269) and Red Dog (Block 622) prospects in DeSoto Canyon, a company spokeswoman said. The company holds a 100 percent interest in both blocks.
Largely because of protests from opponents worried about the potential effects of drilling on Florida’s tourist industry, the original Sale 181 area was slashed by the U.S. Department of the Interior to an area measuring just 25 miles by 100 miles.
Still, Eastern Gulf Sale 181 was one of the most successful offerings of its size in Gulf history, generating $340.5 million in high bids. Anadarko and Shell dominated the sale, accounting for 72 percent or $245 million of total high bids.
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