Spain-based energy firm Repsol and LLOG Exploration Offshore have signed an asset exchange and joint participation agreement to develop deepwater assets in the US Gulf of Mexico (GoM).
Under the terms of the deal, the firms will undertake drilling of a delineation well at Repsol’s Leon discovery. The agreement also covers Keathley Canyon blocks 642, 643, 686 and 687.
Drilled by Repsol in late 2014, the Leon discovery on Keathley Canyon block 642 is located about 321km offshore Louisiana in approximately 6,000ft of water.
Drilled to a total depth of about 32,000ft, the Leon well encountered nearly 500ft of high quality net oil pay in multiple sands in the Lower Tertiary formation. It was not fully delineated.
LLOG said that potential development options for Leon field will be evaluated following completion of the delineation drilling scheduled in the second half of the year.
LLOG and Repsol will have 33% stake and 50% interest respectively in the delineation well.
Repsol will also acquire stake in the LLOG-operated discovery Moccasin in Keathley Canyon 736.
Discovered in 2011 and drilled to a total depth of over 31,000ft, the Moccasin well encountered nearly 400ft of net oil in the Lower Tertiary.
In 2017 Lease Sale, LLOG had licensed the Keathley Canyon 736 block, which hosts the Moccasin discovery located in over 6,500ft of water.
Additionally, as part of the deal, LLOG will have 31.35% interest in the Moccasin field while Repsol will acquire 30% stake.
Currently, LLOG and Repsol jointly own the Buckskin field development located on Keathley Canyon blocks 785, 828, 829, 830, 871 and 872 in approximately 6,800ft of water.
The LLOG-operated Buckskin field, which is being developed in phases, is scheduled to commence production in mid-2019.
LLOG president and CEO Philip LeJeune said: “We have worked well together at Buckskin and the delineation of the potentially significant discoveries at Leon and Moccasin is another perfect match for the deepwater technical knowledge and development expertise that both our companies possess.
“These highly prospective deepwater discoveries are in close proximity and are targeting the same Lower Tertiary formation that we are exploiting at Buckskin.
“We look forward to working together with Repsol on other future deepwater developments in the Gulf of Mexico and greatly value our strong working relationship.”