The Noble Valiant drillship has spudded the Who Dat East exploration/appraisal properly, MC 509-1, within the U.S. Gulf of Mexico (GOM).
The goal of the properly is to appraise a gasoline/condensate discovery made in 2001 and check quite a lot of extra potential reservoir targets within the Center Miocene part, Karoon Vitality Restricted stated in an announcement Tuesday on the Australian Securities Change.
Karoon stated the properly will likely be drilled as a deviated gap with a complete measured depth of roughly 25918 toes (7,900 meters) and can take roughly 55 to 60 days to drill and consider. Topic to the outcomes, it could be suspended as a possible future producer, the corporate added.
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Who Dat East is estimated to comprise 5.4 million barrels of oil equal (MMboe) of 2C contingent sources internet to Karoon on a internet income curiosity (NRI) 1 foundation and 10.7 MMboe of unrisked 2U potential sources internet to Karoon on a NRI foundation. The mixture geological chance of success is estimated to be 62 %. The properly is anticipated to value $50 million to $56 million internet to Karoon, together with a two-for-one carry, capped at $23 million, in keeping with the announcement.
The Who Dat East Joint Enterprise contributors on a working curiosity foundation are operator LLOG Exploration Firm, L.L.C. with a 40 % stake, Karoon with 40 %, and Westlawn with 20 %.
Who Dat is a standard deepwater oil and gasoline operation positioned in roughly 2624.7 toes (800 meters) of water offshore Louisiana inside the federal waters of the U.S. GOM. Earlier within the month, the Who Dat East appraisal/exploration properly and the Who Dat South exploration properly offshore had been permitted for drilling by their respective joint ventures.
Karoon in December 2023 acquired pursuits within the U.S. GOM from LLOG for $720 million. The acquired property embrace a 30 % working curiosity within the Who Dat and Dome Patrol oil and gasoline fields and related infrastructure, an roughly 16 % working curiosity within the Abilene area and ranging pursuits in adjoining exploration acreage.
Karoon not too long ago reported whole manufacturing of three.11 MMboe on a internet working curiosity foundation for the March quarter. Pushed by a full interval of manufacturing from the Who Dat property within the U.S. (GOM), manufacturing rose 18 % quarter over quarter.
The Who Dat South properly, which will likely be drilled by the Seadrill West Neptune drillship, can also be anticipated to start drilling within the second quarter of 2024, the corporate stated in an earlier assertion.
The corporate not too long ago revised its steerage for 2024 from 11.2 – 13.5 MMboe to 10.5 – 12.5 MMboe. The revision primarily displays a downgrade in Who Dat manufacturing, with a lot of the discount associated to lower-than-expected deliverability and oil manufacturing being prioritized over gasoline. Karoon earlier stated it’s “in discussions with the operator to find out optimum mitigation methods for the recognized challenges and to maximise the worth of Who Dat manufacturing”.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
