WD112 - Walter

Location

The Coelacanth project is located in the Gulf of Mexico, specifically in the East West (EW) 834 block. This area is characterized by relatively shallow water depths, which influenced the choice of the production system.

Discovery and Exploration

The discovery at EW 834 was made in 2012 using the semisubmersible rig Ocean Victory. The well encountered oil in several zones at a target depth of 21,000 feet, with sufficient reserves to justify development. This discovery was part of Walter Oil & Gas Corporation's active exploration efforts in the Gulf of Mexico, which also included successful projects like the ST 231/232 Powerball Prospect and the ST 311 Megalodon Prospect.

Lease and Unitization

Following the discovery, Walter Oil & Gas Corporation secured the necessary leases, including the acquisition of the MC 793 lease from BP in August 2012. The company and its partners then sought unitization of the acreage over the Coelacanth prospect, which was granted by the Bureau of Safety and Environmental Enforcement in April 2015. This unit covers portions of each of the relevant leases from the surface down to 26,000 feet.

Production System

Given the water depths and the need to manage high-pressure oil zones, Walter and its partners opted for a fixed-legged platform design rather than a floating production system or subsea development. This choice allowed for the use of dry trees, which are easier to service and control by platform personnel. The platform is designed to house up to 100 personnel and will be fully manned during production.

Platform Construction

The construction of the Coelacanth platform began in March 2013 and was completed in October 2015, involving approximately 2,190,000 man-hours of work. The platform's jacket legs were built with steel plate from Austria, while the remaining jacket cross bracing was procured from South Korea. The topside structure also used a mix of steel plate origins. The platform features a 3-level deck to hold wellheads and processing equipment.

Future Development Plans

The Coelacanth Platform is planned to serve as a production host for several development wells targeting the main Miocene 20,000-foot Sand oil reservoir. Additional wells will test other hydrocarbon indicators (HCIs) interpreted as large oil reservoirs nearby. There are also plans to capture a proven oil zone at 9,000 feet discovered by an older well on the block. The platform is designed to support future discoveries from other nearby leases.

Operational Benefits

The fixed-legged platform allows for the use of lower-cost platform rigs during development drilling, instead of semisubmersibles. This design also facilitates easier maintenance and control of the wells by platform personnel, enhancing operational efficiency and reducing costs.

In summary, the Coelacanth project represents a significant investment by Walter Oil & Gas Corporation in the Gulf of Mexico, leveraging advanced exploration and production techniques to tap into the region's prolific hydrocarbon resources.