U.S. oil company Kosmos Energy has brought online a second development well at its Odd Job field in the Gulf of Mexico and connected it to LLOG’s Delta House FPS.
Kosmos is the operator of Odd Job, located in Mississippi Canyon Blocks 214/215, with a 55% interest.
Kosmos said on Wednesday that the second well was brought online in late September and connected to the LLOG-operated Delta House Floating Production System (FPS), providing near-term growth at the field.
A third Odd Job well was drilled in May, exceeding pre-drill resource estimates, and is expected to start production through existing subsea infrastructure to the Delta House FPS by early 2020.
The company’s production in the Gulf of Mexico during the third quarter, including periods prior to the transaction closing, was approximately 24,200 barrels of oil equivalent per day (boepd).
Kosmos entered the field through the acquisition of Gulf of Mexico operator Deep Gulf Energy (DGE) for a total consideration of $1.225 billion, which was completed in September 2018.
As part of the DGE transaction, Kosmos acquired a portfolio of short-cycle growth assets, including a high-quality inventory of exploration prospects.
During the third quarter, the Nearly Headless Nick prospect (Kosmos 21.95% WI) was successfully drilled to a total depth of 5,807 meters (19,052 feet) and encountered 26 meters (85 feet) of net pay in the Middle Miocene objective. Nearly Headless Nick is a subsea tie back, which is expected to be brought online through the Delta House facility in 2020, adding near-term reserves and production growth.
Competition for basin access remains near historical lows and, in August, Kosmos expanded its inventory as one of the most active participants in Gulf of Mexico Lease Sale 251 with apparent high bids on seven deepwater blocks. These blocks include three with low risk prospects and one with a Wilcox discovery relinquished by a major.
As part of the company’s strategy to expand its position in the Gulf of Mexico, in the third quarter Kosmos incurred approximately $50 million of exploration expense to acquire seismic over new prospective areas and to re-license seismic over existing fields.