Black Bay, East - Llox
- Type: Rig
- asset
- Latitude: 29.5728463
- Longitude: -89.4549210
Location
The project is situated in the toe of the Louisiana “boot,” specifically in areas such as Breton Sound and East Cox Bay, where the Mississippi River meets the Gulf of Mexico. The primary focus is in Plaquemines Parish.
Operators and Ownership
The project is being developed by Upstream Exploration, a privately held company owned by HighBridge Principal Strategies (HPS). Upstream Exploration is working with assets acquired during the 2016 restructuring of RAAM Global Energy Co., of which HPS was a creditor.
Geology and Targets
The wells in this project target geopressured Middle Miocene sand formations at depths ranging from approximately 10,500 to 13,800 feet. The recent wells have encountered significant hydrocarbon reserves, such as 59 feet of net condensate pay in a 75-foot-gross interval at about 12,000 feet in the East Cox Bay Field.
Production and Flow Rates
The wells have shown promising production rates. For example, one well in the East Cox Bay Field flowed at 675 barrels of oil per day (bbl/d) and 4.9 million cubic feet of gas per day (MMcf/d). Another well came online with flow rates of 1,700 bbl/d and 13 MMcf/d.
Resource Potential
The resource potential for this project is substantial, with estimates suggesting 88 billion cubic feet (Bcf) of gas and 5- to 6 million barrels (MMbbl) of oil per single-well prospect. The area benefits from strong amplitude and structural conformity, indicating significant hydrocarbon reserves.
Drilling and Development Plans
The Black Bear program involves drilling vertical wells targeting oil-bearing reservoirs. The wells are expected to flow naturally from partial water drive, consistent with other operations in the area. The target depth for these wells is near 13,800 feet. Rig availability has been an issue, but barge rigs are typically more available, although they can be challenging to move.
Financial and Investment Aspects
The project is funded through a combination of cash flow from existing wells and capital raised from private investors. The Black Bear program is custom-packaged for private investors, reflecting current and long-term commodity price trends. The program has attracted significant interest from major players in private equity due to the enormous potential in the Gulf Coast region.