Friday, July 19, 2019

Repsol, LLOG to Partner on Deepwater US Gulf Developments

May 1, 2019

Image: Repsol

The U.S.-based exploration and production company LLOG Exploration Offshore and  Spanish oil company Repsol announced the signing of an Asset Exchange and Joint Participation Agreement in the deepwater Gulf of Mexico.

The agreement provides for the drilling of a delineation well at Repsol’s Leon discovery and covers Keathley Canyon blocks 642, 643, 686 and 687.  In addition, Repsol will acquire an interest in the LLOG-operated discovery Moccasin in Keathley Canyon 736.

Leon is a discovery drilled by Repsol in late 2014 on Keathley Canyon block 642 and is located about 200 miles offshore Louisiana in approximately 6,000 feet of water.  

The discovery well was drilled to a total depth of about 32,000 feet and encountered nearly 500 feet of high quality net oil pay in multiple sands in the Lower Tertiary formation but has not yet been fully delineated.  

The new agreement with LLOG provides for the drilling of a delineation well this coming summer which will be operated by LLOG.  LLOG will have a 33% working interest in the well while Repsol will have a 50% working interest. Following the scheduled delineation drilling, potential development options will be evaluated for this field.

Moccasin is a discovery made on Keathley Canyon 736 in 2011 in over 6,500 feet of water.  The discovery well was drilled to a total depth of over 31,000 feet finding nearly 400 feet of net oil in the Lower Tertiary.  

LLOG subsequently licensed the block in a 2017 Lease Sale.  Moccasin and Leon are less than 20 miles apart which provides the opportunity for co-development.  LLOG will retain a 31.35% working interest in the field and Repsol will acquire a 30% interest in Moccasin.

Currently, LLOG and Repsol are joint owners in the ongoing development of the Buckskin discovery which is located on Keathley Canyon blocks 785, 828, 829, 830, 871 and 872 in approximately 6,800 feet of water.  

The initial phase of this large-scale, deepwater project consists of two development wells which were drilled to approximately 29,000 feet, also targeting the Lower Tertiary formation.  First production from Buckskin is expected in mid 2019.  LLOG is the operator of Buckskin.

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