The central Gulf of Mexico shelf area comprises approximately 36% and 30% of the company's proved reserves and production, respectively, primarily within the South Timbalier 21 field. Other key Central Shelf fields include Eugene Island 330 and East Cameron 334/335.
South Timbalier 21 — View Statistics
South Timbalier 21 is the 9th largest oil field on the Gulf of Mexico shelf. It was discovered in 1957 and has produced more than 300 million BOE to date. Located six miles offshore of Lafourche Parish, Louisiana in approximately 50 feet of water, the 100% owned and operated South Timbalier 21 field includes acreage in South Timbalier blocks 21, 22, 23, 27 and 28, as well as two state leases. The company’s assets within the field include 52 producing wells, connected to 11 major production platforms and 79 smaller support facilities. The field’s average daily net production for the year ended June 30, 2009 was 5,760 BOE/d, or 30% of the company’s fiscal 2009 net production. Since acquiring the field in the Marlin transaction in April 2006, the company has drilled 18 development and delineation wells. As of June 30, 2009, net proved reserves for the field were 14.1 million BOE, 74% of which was oil. In fiscal 2009, approximately $53 million was spent in the field for development work and facilities, compared with approximately $63 million the prior year.
East Cameron 334/335
We have a 51 percent working interest in and operate the East Cameron 334 Field located 90 miles South of Cameron, Louisiana in 230' of water. The field underlies East Cameron Blocks 334, 335, 336 andWestCameron 580 and 601. Discovered in 1972, this is the 29th largest natural gas field on the Gulf of Mexico shelf, having produced one trillion cubic feet equivalent to date from Middle to Lower Pleistocene sands at depths from 7,000 feet to 15,000 feet. There are 13 active completions in the field that have been shut-in since August 2008 due to damage that was sustained by Hurricane Gustav. After the repairs to the gas sales line are completed, we estimate net field production of 0.8 MBOED to be restored in our upcoming fiscal second quarter.
Eugene Island 330
We have a 17.5 percent working interest in the Apache operated field in 250 feet of water, located 130 miles Southwest of New Orleans. Well depths range from 6,000 to 11,000 feet. Cumulative production from the field is approximately 730 MMBOE. The field is currently shut in due to damage from Hurricane Ike. The hurricane toppled the A and C platforms, and damaged the B and D platforms in the field. Apache Corporation ("Apache") recently assumed operatorship of the field, however, Devon Energy Corporation, the former operator, continues to operate the adandonment of the A and C platform wells and salvage of the platforms which is underway. Production from the 10 remaining wells in the field is expected to be restored by Apache in our upcoming fiscal second quarter. Net reserves are 82 percent oil.
Earnings Call
