DGE III hits at Rampart Deep

Sep 5, 2017

Deep Gulf Energy III (DGE III) has encountered hydrocarbon pay at the Rampart Deep well in the deepwater Gulf of Mexico, according to partner Stone Energy.

Deepwater Asgard. Image from Transocean.

The Rampart Deep well (MC 116 #1) is in Mississippi Canyon Block 116, about 8.5mi south of the Pompano field, at 2600m water depth. The well is being drilled with the Transocean Deepwater Asgard drillship.

Stones says 130ft (net) of liquids-rich natural gas pay in three primary zones. According to DGE III, prospect mean reserve potential is 32 MMboe. First production is anticipated in 2019.

The completion of the Rampart Deep well will be deferred while the partners analyze the well data, and will be further evaluated in conjunction with future Derbio drilling results, Stone says.

Drilling plans for Derbio will be reviewed with the Rampart Deep partners over the next 90 days. If Derbio is successful, first production from the Rampart Deep/Derbio project is expected by late 2019 and could be a multi-well tie back to the Stone 100% owned Pompano platform.

In addition to the reserve potential of Rampart Deep, Stone says that this well also provides critical information that reduces the exploration risk of its Derbio prospect, which is positioned up-dip from Rampart Deep and located one block to the northwest in Mississippi Canyon Block 72.

"The Rampart Deep well is encouraging to Stone as this discovery provides us with potential future reserves as well as important information that should reduce the risk of our other prospects in the area, particularly the Derbio prospect,” says Stone Interim CEO and President James M. Trimble. “The discovery at Rampart Deep, along with a success at Derbio, would allow us to further leverage our infrastructure position at our Pompano platform by generating additional production and cash flow with minimal incremental operating cost."

RDE III is the operator of Rampart Deep with 30% interest. Partners include Stone Energy (40%), and Ridgewood Energy Corp. (30%).

Stone currently holds a 100% working interest in the Derbio prospect, but the Rampart Deep partners may elect into the Derbio well for a 60% total working interest, proportionate to their respective Rampart Deep working interests, with the remaining 40% owned by Stone.