The MP 270 #3 BP 01 well was perforated from14,100 feet to 14,186 feet measured depth (MD), 14,058 feet to 14,144 feet true vertical depth (TVD) in a Miocene age sand reservoir. Well logs indicate additional potential reservoirs in the well, but a decision was made not to run additional tests at this time. These untested sands will be targets of future drilling activity on the Hummer Project. Significant production occurs for similar reservoirs along trend. Peak production rates from those intervals can exceed 25 MMcfpd and 1000 bcpd. After testing, the well will be temporarily suspended pending the design, fabrication and installation of permanent production facilities and pipelines. The Company estimates first production from the Hummer project to commence mid-year 2017.
The Hummer discovery well is located in U.S. federal waters approximately 50 miles southeast of Venice, Louisiana. The water depth at the location is approximately 215 feet. The well was drilled, logged and temporarily suspended during Q3/Q4 2015 and has awaited testing until a recently completed production jacket could be installed over the well. The Ensco 87 rig was used to tie-back the well bore to the jacket and complete and test the well. The next stage of development will be to utilise the results of the test to design, fabricate and install a deck section with production facilities on the jacket, lay flow lines and connect to existing oil and gas transportation systems. It is anticipated that this process will take approximately 6 to 8 months. Petsec will continue to update the market on completion of key milestones in the development of the project.
Petsec's Chairman and Managing Director, Terry Fern, commented:
"We are very pleased with the drilling and test results of this initial well on the Hummer Project. This success is the culmination of an effort that began prior to 2010 when Petsec initially identified the prospect on 3D seismic data and continued through leasing and eventual drilling of the project several years later. Hummer is a significant oil and gas discovery covering a large prospective area and extending over portions of three offshore lease blocks that will require additional wells and facilities to define and develop. Although current information is limited from a single well and test, the indicated resource potential significantly exceeds the Company's pre-drill mapped target estimates. The Company holds a 10.24% net revenue interest in the project. We look forward to the commencement of production from this well and further development of the project."
Participating working interests in the well are:
Petsec Energy Inc. 12.5%
Other Private Companies 87.5%
Details of the Hummer Development Project:
Discovery Well Name: OCS-G-22812 #3 BP 1
Type of Well: Exploration, Pending Production Well
Location of Well: Offshore Louisiana, Federal Waters
Original TD: 16,041 feet MD/16,000 feet TVD
By-pass TD: 14,342 feet MD/14,300 feet TVD
Project Operator: Castex Offshore, Inc.
Petsec Working Interest: 12.5%
Petsec Net Revenue Interest: 10.24%
About Petsec Energy Ltd:
Petsec Energy Ltd (ASX:PSA) (OTCMKTS:PSJEY) is an independent oil and gas exploration and production company listed on the Australian Stock Exchange and on the US OTC Market. It has operations in the shallow waters of the Gulf of Mexico and Louisiana Gulf Coast region of the USA, and in the Republic of Yemen.
Source:
Petsec Energy Ltd
Contact:
Mr. Paul Gahdmar Company Secretary & Group Financial Controller Petsec Energy Ltd T: +61-2-9247-4605 F: +61-2-9251-2410 Mr. Manny Anton Head of Investor Relations & Corporate Development Petsec Energy Ltd T: +61-2-9247-4605 F: +61-2-9251-2410 www.petsec.com.au