U.S.-based oil & gas operator W&T Offshore will start drilling the South Timbalier 224 (ST 224) lease in the Gulf Of Mexico in mid-October.
W&T Offshore is the operator of the ST 224 lease with a 39 percent stake. Otto Energy is its partner with a 25% interest.
The operator contracted a jack-up rig previously owned by the bankrupt driller Hercules Offshore to drill the ST 224 gas/condensate prospect back in July. The rig, Enterprise 264, is now owned by Enterprise Offshore.
According to Otto’s statement on Thursday, the Enterprise 264 drilling rig is expected to be on location within the coming week in preparation for drilling of this well. Drilling will target a large, amplitude supported, high CGR (condensate gas ratio) gas condensate exploration prospect located in the prolific Bul. 1 trend.
The prospect sits in approximately 170 feet of water. The well has a relatively shallow target depth of 10,800ft (TVD) (11,439ft (MD)) and is expected to take around 55 days to drill and evaluate.
Given the high chance o fsuccess of this opportunity, the well has been planned so as to optimize a subsequent development. Should significant hydrocarbons be intersected, the plan is to accelerate development by completing this first well as a producer. Several existing production platforms fall within tie-back distance of the exploration well providing multiple options for rapid development.
“Otto is confident that a discovery can be brought on to production quickly and cost effectively,” the company said.
Otto’s Managing Director, Matthew Allen, commented: “We are very excited to be involved with the drilling of the ST 224 well so soon after securing a 25% interest in this highly prospective opportunity. With an experienced Gulf of Mexico operator in W&T Offshore and a partnership which includes a very successful Gulf of Mexico prospect generator such as Houston Energy we feel confident that exploration drilling and subsequent development activities will be conducted in a quick, safe and cost effective manner.”