The company's onshore Gulf Coast properties comprise approximately 22% and 17% of its proved reserves and production, respectively. This region includes numerous fields and focus areas, the largest of which include the Lake Salvador project and the Rabbit Island field. Many, like the Laphroaig discovery pictured here, are one- or two-well fields.
Rabbit Island Field
The Rabbit Island field is located in Louisiana state waters in Iberia and St. Mary Parishes, 95 miles southwest of New Orleans. Energy XXI operates and maintains a 99.9% working interest in the field, which covers approximately 27,000 acres. The field's average daily net production for the year ended June 30, 2009 was 606 BOE/d and net proved reserves for the field were 3.4 million BOE, 90% of which was natural gas. The field was discovered by Texaco in 1939 and is a structurally complex, faulted, shallow piercement salt dome with associated radial faulting. The field has produced more than 1.2 trillion cubic feet equivalent to date.
Lake Salvador
The Lake Salvador Project is a joint venture area onshore south Louisiana in which Energy XXI has a 50% working interest. The project has in excess of 1,000 square miles of merged and reprocessed 3-D seismic data that is helping the company identify both shallow and deep prospects that were overlooked by previous seismic coverage. Since entering into the agreement, the company has spent approximately $50 million on seismic, land and drilling activity and achieved an overall success rate of 75%, including 70% on 10 exploration wells and 100% on two development wells. In fiscal 2009, net production averaged 1,300 BOE/d a day. Currently, the joint venture has lease options on 80,000 gross acres within the Lake Salvador Project, with the opportunity to pick up an additional 25,000 gross acres.
Earnings Call
