Drilling Successes and Cost Reductions Offset Production Decline

Monday, August 23, 1999
Unocal Corporation's Spirit Energy 76 unit said its exploration drilling successes and aggressive development program on the Gulf of Mexico shelf area in the first half of 1999 should more than offset the natural production declines for the year. "We have a long record of low drilling and operating costs on the shelf, which enables us to enjoy returns that cannot be matched by the typical shelf operator," said Roger C. Beach, Unocal chairman and CEO. Beach noted Spirit Energy's GOM shelf prospects are predominantly natural gas and deliver production quickly, making them extremely attractive in the current capital-constrained environment. Spirit expects new projects on the shelf this year to generate the same amount of new production as last year with roughly one-third less capital investment. The company said the departure of other producers from the shelf region creates opportunities for Unocal to leverage its exploration, drilling and operating expertise across a larger asset base. Shelf/transition zone discoveries Spirit Energy's discoveries on the shelf and transition zone this year include: Mazda (High Island Block 133): The Mazda well was drilled to a total depth of 14,834 ft. and encountered approximately 360 ft. of net gas pay. First production from this new field began in June, with production expected to reach 50 million cu. ft. of natural gas per day (mmcfd) from two wells. Spirit Energy has a 100-percent working interest. Redfish Point (Vermilion Parish, Louisiana): The Redfish Point well was drilled to a total depth of 18,123 ft. and encountered 185 ft. of net gas pay. Production began in April at a gross daily rate of 900 barrels of oil and 4 mmcfd of gas. Spirit has a 50-percent working interest; PennzEnergy is operator. In the coming weeks, the company also expects to have the results of at least two, highly promising exploration wells, which are currently testing Norphlet formation targets in the offshore Mobile area. Next year, Spirit Energy will begin using the new Discoverer Spirit drillship to drill Unocal's "ultra deep" prospects in up to 10,000 ft. of water.
Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

7 Rescued from Sinking Freighter Near Haiti

Seven crewmembers were rescued after their 100-foot coastal freighter began taking on water and sank approximately 45 miles north off of Cap Haitien, Haiti, Friday.

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

China Building Island Big Enough for Airstrip

Satellite images show China is building an island on a reef in the disputed Spratly Islands large enough to accommodate what could be its first offshore airstrip in the South China Sea,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1035 sec (10 req/sec)