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Independent Newfield Exploration scores again Deep-gas discovery could exceed 50 billion cubic feet, more wells planned Petroleum News Houston Staff
U.S. independent Newfield Exploration keeps racking up geologically deep natural gas discoveries in the relatively shallow waters of the Gulf of Mexico’s continental shelf.
The Houston-based company unveiled another large find May 1, saying its West Cameron Block 73 discovery in federal waters could exceed pre-drill estimates of 50 billion cubic feet of gas equivalent.
That makes six discoveries out of nine attempts for gross estimated discovered reserves of around 225 billion cubic feet, or about 83 billion cubic feet net to Newfield. Newfield operates Block 73 with a 70 percent working interest. Westport Resources, another independent, owns the remaining 30 percent interest.
Newfield said it plans to drill eight to 10 deep gas exploration wells this year on the aging shelf, where shallower gas plays are generally played out and large accumulations are becoming increasingly difficult to find.
The Minerals Management Service believes there is a mean 10.5 trillion cubic feet of gas reserves to be had in the deeper formations on the shelf below a geological depth of 15,000 feet. Estimates range from as low as 5 tcf to as high as 20 tcf, according MMS reserve models. Well encountered 250 feet of net gas pay Newfield’s latest deep well was drilled to total depth of 16,082 feet and encountered 250 feet of net gas pay in two zones below 15,000 feet, the company said. The find was characterized by a company official as “high quality” and “capable of high flow rates.”
He said Newfield must decide whether to develop its West Cameron discovery using new or refurbished production facilities, noting it would take longer to bring the field on stream if new facilities were installed but that they would produce higher flow rates.
Nevertheless, the company is hoping for first production in early 2004, the company official said. Past Newfield deep gas discoveries have averaged about 20,000 million cubic feet per find, he said.
Newfield also has economics on its side at West Cameron, helping to offset the extremely high cost of deep gas wells. It’s located just 10 miles offshore Louisiana and in less than 30 feet of water. And under new rules proposed by MMS, the discovery would qualify for royalty relief on the first 20 billion cubic feet of production.
“You really have to applaud MMS for its royalty relief (policies),” the company official said. “It really goes a long way to help pay for facilities.”
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