The drilling of Beacon Offshore Energy's Winterfell-2 appraisal well on Block 943 in the Green Canyon area of the U.S. Gulf of Mexico has been completed with the well showing encouraging results, Kosmos Energy, a partner in the project said Tuesday.
The Winterfell-2 well, where Kosmos' working interest is ~16.4%, was drilled to evaluate the adjacent fault block to the northwest of the original Winterfell discovery and was designed to test two horizons that were oil bearing in the Winterfell-1 well, with an exploration tail into a deeper horizon.
According to Kosmos Energy, the well discovered approximately 40 meters (~120 feet) of net oil pay in the first and second horizons with better oil saturation and porosity than pre-drill expectations. The exploration tail has discovered an additional oil-bearing horizon in a deeper reservoir which is also prospective in the blocks immediately to the north.
100 million barrels
"The results of this appraisal well further define the resource potential in the central Winterfell area, with the current estimate around 100 million barrels gross," Kosmos Energy said.
Separately, Kosmos said it had farmed down an interest in the two blocks immediately to the north of the Winterfell discovery to the owners of the central Winterfell discovery in exchange for cash consideration and the retention of an overriding royalty interest.
"This aligns the partnership and provides the ability to further scale the development with low-risk follow-on drilling. Kosmos will retain a 35% working interest in the two blocks, which have been significantly de-risked following the results of the Winterfell-1 and Winterfell-2 wells. The Winterfell complex is located within tie-back distance to several existing and planned host facilities and the partnership is working to define the development plan," Kosmos Energy said.
Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer said: “The positive result from Winterfell-2 appraisal well demonstrates the greater potential in the Winterfell area. The well results are encouraging and provide the support needed to advance a low-cost, lower-carbon development scheme that could be brought online in around two years.”
The Winterfell-2 well is located in approximately 1,600 meters (~5,800 feet) of water and was drilled to a total depth of approximately 8,700 meters (~28,500 feet).
An affiliate of Beacon Offshore Energy LLC is operator of the Winterfell-2 well. Additional interest owners include Red Willow Offshore LLC, Ridgewood Monarch North LLC, CSL Exploration, LP, CL&F Offshore LLC, Houston Energy, L.P., Beacon Offshore Energy Exploration LLC, and Beacon Asset Holdings LLC.