Talos Energy's GC 18 platform in the Gulf of Mexico

Talos plans to redo Bulleit well in shallower sand

Houston-based oil and gas company Talos Energy plans to recomplete its Bulleit well, located in the U.S. Gulf of Mexico, in the shallower DTR-10 sand and to move away from the MP sand with production expected in mid to late 2022.

Talos Energy's GC 18 platform; Source: EPIC Management Resources

The Bulleit field is located in Green Canyon 21 operated by Talos Energy with a 50 per cent interest. Partners are EnVen Energy Ventures and Otto Energy holding 33.3 per cent and 16.7 per cent working interests, respectively.

The project has been developed via a 10-mile subsea tieback to the Talos-operated GC 18 Whistler platform and the production started in mid-October 2020.

However, since then, Talos and its partners have encountered difficulties in reaching stabilized production from the Bulleit field.

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Late last year, Talos initiated a review of the conditions surrounding the drilling of the MP sands, the setting of the production casing, perforating, and the completion and stimulation activities.

The well continued to flow at then current rates while additional engineering analysis was completed to determine whether a well intervention and stimulation could enhance the current well deliverability, or if a recompletion was warranted.

According to Otto Energy’s update on Wednesday, 21 April, a technical assessment of the MP sand production performance has been completed.

Otto stated that detailed bottomhole pressure and reservoir performance data collected after hook-up and first production indicate a smaller reservoir than originally anticipated.

While additional technical work is ongoing, the currently favoured path forward is to move away from the MP sand and execute a recompletion of the well in the shallower DTR-10 sand.

The recompletion is expected to be low risk and highly economic given the nearby analogs, well data and existing infrastructure in place.

A DTR-10 recompletion will require the procurement of long lead items from manufacturers. These long lead items are expected to cost approximately $3.5 million ($0.6 million, net to Otto) with payment expected for such items in mid CY 2021.

Due to deepwater rig availability, weather, timing, and long lead items, the recompletion is expected to start in mid CY 2022, with production from the DTR-10 immediately following in mid to late CY 2022.

Otto explained that recompletion economics are enhanced as the joint venture already has an existing pipeline and host platform in place and the recompletion costs will be the only incremental cost required to realize the DTR-10 production.

Otto Energy Executive Chairman, Mike Utsler, commented: “Otto remains confident and excited in the potential of the shallower DTR-10 sand, which can be accessed from the existing well bore and requires no additional infrastructure to bring online.

The timing required by the operator to procure the long lead equipment, secure a deepwater rig aligned with and available against the weather and current constraints will result in delaying contribution to Otto’s bottom line until 2022”.