Houston-based Helix Energy Solutions Group, Inc. said it has an estimated discovery of about 100 billion cubic feet of gas equivalent at its 100%-owned Noonan prospect on Garden Banks Block 506 in deepwater Gulf of Mexico.
First production from the discovery should be achieved in the second half of 2008, Helix chief executive Martin Ferron said Feb. 26, adding that all of the development work for Noonan will be performed using Helix assets and services. "We estimate that this work will generate around $100 million of revenue at market rates," Ferron added.
The prospect is located in roughly 2,700 feet of water about 145 miles offshore Galveston.Texas. Since operations began in October, Helix said it completed the drilling of an exploratory well and two appraisal sidetracks and successfully delineated the reservoir for completion of the well.
"While it is still premature to finalize a reserve estimate, sufficient pay was encountered to point to reserve potential of at least 100 bcfe," Ferron said. "Development plans being screened include a fast track subsea tie-back to selected infrastructure located in shallower water." Ferron noted that Noonan was the first prospect drilled from a deepwater inventory acquired last year from Remington Oil & Gas. He said there are more than 20 high quality prospects in the inventory left to drill.
"The drilling of the deepwater prospect inventory ... should create significant production returns and provide incremental contracting backlog to supplement an already buoyant medium term deepwater service outlook," he said, adding that Helix may sell up to 50% of its interest to cover development costs and provide cash for possible debt reduction and possible stock repurchase.
