Castex Energy to spud second Hummer well in July

Castex Energy plans to drill an appraisal/development well on the Hummer oil and gas development in the U.S. Gulf of Mexico.

Petsec Energy, an oil and gas exploration and production company and Castex’s partner in the project, said on Thursday that the Main Pass Block 270 B-2 well was scheduled to be drilled in mid-July 2018.

According to Petsec, the well will be drilled from the Main Pass Block 270 B platform, located in the northwest comer of the Hummer field in Main Pass Block 270, offshore Louisiana.

This will be the second well to be drilled on the Hummer field, following the B-1 exploration/discovery well in late 2015 which was brought into production in late 2017.

The B-1 well was a straight hole drilled to a true vertical depth (TVD) of 15,748 feet and penetrated five oil and gas reservoirs one of which was completed for production. The well is currently producing at gross rates of approximately 18 million cubic feet of gas per day plus 370 barrels of oil per day.

The Hummer Field structure extends over a strike of five miles within the Main Pass Block 270,273,274 leases which cover 15,000 acres, in some 200 feet of water.

The B-2 appraisal/development well has a planned bottom hole location some 6,000 feet to the east of the B-1 discovery well. This is the first of potentially three to eight appraisal and development wells required to develop the field.

Pestec added that the well was designed to test six potential oil and gas reservoirs, namely, the five oil and gas reservoirs and a deeper horizon not tested in the B-1 well.

The primary objectives of the B-2 well are two sand reservoirs with proven oil and gas reserves determined from the B-1 well. These reservoirs are also productive in similar nearby fields like the Main Pass 280/283 field complex.

The B-2 well is planned to drill to a measured depth (MD) of 18,559 feet with a true vertical depth (TVD) of 16,624 feet. The well is anticipated to take approximately 80 days to drill and reach total depth.

Completion of the well for production is estimated at two weeks and production is anticipated four to six weeks of well completion. Production is estimated to begin in mid-December 2018.

Pestec said that the estimated net cost to the company to drill the well was approximately $2.6 million, and $1 million for well completion and production facilities. The company will fund the drilling of the well with $5 million from Tranche 3 of its Convertible Note Facility.