Appaloosa (MC503) - LLOG Offshore

Appaloosa (MC503) - LLOG Offshore Oil and Gas Asset Profile

Location

The Appaloosa (MC503) oil and gas asset is located in the Federal offshore waters of the United States, specifically at the coordinates 28.466, -89.025 (WGS 84).

Operator and Ownership

The asset is operated by LLOG Exploration Offshore, LLC. While the specific ownership details are not provided, LLOG has been involved in various partnerships and joint developments in the Gulf of Mexico.

Discovery and Development

• The MC 503 lease was first available in March 2005, after previously being leased by Shell and then farmed out to British Borneo. LLOG acquired the lease and drilled the inaugural well, the 503 No. 1 well, at a 100% working interest due to the lack of a suitable partnership offer at the time.
• The discovery well encountered 53 feet of oil in a laminated section on top of 130 feet of high net-to-gross wet sand. This well provided valuable information for further geological interpretations and identified additional potential reservoirs in the area.

Production Details

• The Appaloosa (MC503) asset has been in production since its development phase.
  • In 2020, the asset produced 0.79 million barrels of oil per year and 119.69 million cubic meters of gas per year.
  • By 2022, oil production slightly increased to 0.86 million barrels per year, while gas production decreased to 72.72 million cubic meters per year.

Geologic and Reservoir Details

• The well drilled in MC 503 encountered oil in a laminated section and high net-to-gross wet sand, indicating significant hydrocarbon reserves.
• The reservoirs are located in multiple sands, with a major sand reservoir identified on MC 547, which is roughly 5,000 acres in size. This reservoir is tied to a British Borneo well drilled in 1998 that logged oil pay, although it was poorly positioned.

Development Strategy

• To optimize development, LLOG and its partner ENI agreed to form a unit to hold all the blocks (MC 503, MC 504, MC 459, and MC 460) and jointly develop the area to avoid competition and reduce costs. This involved swapping acreage to conform to the reservoir boundaries.
• The development plan included drilling from the fewest number of locations to reduce risk and facility installation costs. The wells were planned to be drilled from two main surface locations: the existing 503 No. 1 surface location and a location to the southwest of MC 503.

Environmental and Economic Considerations

• While specific environmental and economic details for the Appaloosa (MC503) project are not extensively outlined, LLOG's general approach to deepwater projects emphasizes operational excellence, safety, efficiency, and economic viability. This is consistent with their broader strategy in the Gulf of Mexico.

In summary, the Appaloosa (MC503) - LLOG Offshore Oil and Gas Asset is an operating project in the Federal offshore waters of the United States, managed by LLOG Exploration Offshore. The project involves the production of oil and gas from multiple reservoirs, with a focus on efficient and economically viable development strategies.