Big Bend (MC698) - Quarternorth Energy

Big Bend (MC698) Oil Field Profile

Location and Geology

• The Big Bend MC698 oil field is located in the ultra-deepwater region of the US Gulf of Mexico, specifically within blocks Mississippi Canyon 698, Mississippi Canyon 742, Mississippi Canyon 697, and additional sub-blocks (G36256 and G28021).
• The field is situated at a water depth of approximately 7,221 feet.

Ownership and Operation

• The Big Bend MC698 field is currently part of the assets held by QuarterNorth Energy, although it is in the process of being acquired by Talos Energy as part of a $1.29 billion deal. QuarterNorth Energy was formed in 2021 by a group of Fieldwood Energy’s creditors after Fieldwood filed for bankruptcy in 2020.
• Historically, the field was operated by Fieldwood Energy, but with the acquisition, Talos Energy will take over the operations.

Field Participation Details

• The field is owned by multiple parties, including QuarterNorth Energy (soon to be under Talos Energy), Houston Energy Deepwater Ventures V, Ridgewood Energy, and W&T Offshore.

Production and Reserves

• The Big Bend MC698 field is a conventional oil field that has recovered approximately 43.42% of its total recoverable reserves as of the last available data. Peak production was achieved in 2016.
• Based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2052.
• The field has strong production histories with nominal declines and significant future development potential.

Production Metrics

• The field is part of QuarterNorth’s portfolio, which adds about 30,000 barrels of oil equivalent per day (BOE/D) to Talos Energy’s production, with approximately 75% of this production being oil.

Geographical and Technical Details

• The Big Bend MC698 field is a medium-sized Miocene oil and associated gas field located in the Mississippi Canyon protraction area.

Future Development and Outlook

• The acquisition by Talos Energy is expected to enhance operational breadth and production profile, improve margins, and increase cash flow. The transaction includes high-margin, low-decline output with low reinvestment rate requirements to sustain production.
• The field offers attractive future development opportunities, including both producing probable zones and near-term development projects in 2024 and 2025.

In summary, the Big Bend MC698 oil field is a significant deepwater asset in the US Gulf of Mexico, characterized by its ultra-deepwater location, substantial reserves, and ongoing production with potential for future development under the new ownership of Talos Energy.