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McMoran' s ultra-deep GoM update reveals perforation issues with Davy Jones, three sweet spots at Blackbeard 

NEW ORLEANS -- McMoRan Exploration updated its ultra-deep exploration and development activities in the shallow waters of the Gulf of Mexico shelf and onshore in the Gulf Coast area, including ongoing operations at Davy Jones No. 1, completion plans at Blackbeard West No. 2 and operations at Lineham Creek and Lomond North.

McMoRan said operations to achieve commercial production at Davy Jones No. 1 on South Marsh Island Block 230 are ongoing. Recent operations designed to unblock the perforations using a propellant stimulation gun had limited success and McMoRan is initiating operations to re-perforate the well with electric wireline through-tubing guns. McMoRan will provide updates as flow testing operations progress.

Davy Jones involves a large ultra-deep structure encompassing four OCS lease blocks (20,000 acres). McMoRan is the operator and holds a 63.4% working interest and a 50.2% net revenue interest in Davy Jones.

Marathon' s Blackbeard West No. 2 ultra-deep exploration well on Ship Shoal Block 188 was drilled to a total depth of 25,584 ft and McMoRan plans to set a production liner, which would enable completion. Through logs and core data, McMoRan has identified three potential hydrocarbon bearing Miocene sand sections between approximately 20,800 and 24,000 ft.

Initial completion efforts are expected to focus on the development of approximately 50 net ft of laminated sands in the Middle Miocene located at approximately 24,000 ft. Additional development opportunities in the well bore include approximately 80 net ft of potential low-resistivity pay at approximately 22,400 ft and an approximate 75-ft gross section at approximately 20,900 ft. Pressure and temperature data indicate that a completion at these depths could utilize conventional equipment and technologies. McMoRan holds a 69.4% working interest and a 53.1% net revenue interest in Ship Shoal Block 188.

12/27/2012

 

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