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Yorktown well costs rise again to $80 million
Devon Energy says the projected cost of its operated Yorktown exploration well in deepwater Gulf of Mexico is now $80 million, up from previous estimates of $55 million, $65 million and $76 million.
Yorktown, located in 2,100 feet of water on Mississippi Canyon Block 886, was spud nearly a year ago and has encountered numerous delays because of downhole problems and strong ocean currents that have disrupted operations. Devon said Sept. 9 that it will not resume drilling until the so-called loop currents subside, a company official said in a recent meeting with analysts.
“The currents are most active during the hurricane season,” he said. “Three other operators are experiencing similar problems.” Price tag of $150,000 per day Meanwhile, Yorktown is costing Devon and partner Kerr-McGee about $150,000 per day, Devon said, adding that the well is at the 23,000-foot level with the primary Miocene target yet to be tested.
Devon plans to drill to 25,000. Pre-drill estimates for the Yorktown prospect ranged from 175-to 450 million barrels of oil equivalent.
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