Spirit Energy 76 Sets Production Record at GOM's Vermilion 39 field

Unocal Corporation's Spirit Energy 76 unit said its 100 percent owned Vermilion 39 field recently set a new all-time production record. A redevelopment program that began last year allowed production from the 50-year-old field to reach 17,500 boepd at year end. In addition, the program allowed more than seven million boe in new reserves to be added to Spirit's 1999 ledger. The year-end rate was 10,000 boepd higher than when the redevelopment program began in April 1999, and production rates from the field are expected to continue to climb in the first quarter of 2000. Vermilion 39 (VE 39) is the second-oldest field in the Gulf of Mexico and has produced more than 285 million boe since production began there in 1951. The redevelopment began with the creation of a geologic earth model of the major field pay sands using 3D seismic data. The redevelopment team imported the seismic information into a reservoir simulation model and used the integrated data to asess various development scenarios. The team incorporated surface production facilities modeling into their analysis and reached an optimized plan of development. As the redevelopment program progressed, the team also used conventional earth science and engineering analysis to assess other opportunities. In total, the VE 39 program involved drilling six new wells, completing workovers of 13 existing wells, modifying six major production facilities and performing stimulation treatments on seven wells. "This program represents a unique blend of high technology application and solid technical expertise," said Tim McDonald, Spirit Energy's Central Gulf Asset Manager with direct responsibility for the field. "Our success at VE 39 exemplifies Spirit Energy's ability to generate significant financial results in a short period of time from its mature assets."