LLOG Exploration Williams

Covington-based LLOG Exploration Offshore is moving forward with two deepwater Gulf of Mexico oil wells in a new discovery.

Covington-based LLOG Exploration found some successful oil production in two deepwater wells in the Gulf of Mexico after its initial discovery in mid-2019.

LLOG Exploration has been bullish on investing in new oil and gas discoveries in the Gulf of Mexico despite a deeply depressed oil price market.

The Spruance discovery happened when the company and its partners drilled below 1,600 feet of water using a subsalt exploratory well. Since then, one well has been drilled 17,000 feet and has shown about 150 net feet of oil play, which refers to the thickness of the oil reservoir.

For scope, one of the most prolific wells, known as Shenandoah and drilled by ConocoPhillips, Marathon and Anadarko, had 1,000 feet of net play in 2013. But it's first appraisal in 2009 only found 300 net feet of oil play. 

In early October, a second well was drilled by LLOG Exploration at a 16,600-foot total depth and there was more than 200 net feet of oil discovered.

The company expects to complete the wells in 2021 and begin selling oil by 2022.

"The results of the second well confirmed our understanding of the field’s reserve potential," Philip LeJeune, CEO of LLOG Exploration said in a news release. 

LLOG inked a deal with Houston-based EnVen to use The Lobster oil platform, which sits 130 miles south of New Orleans in water 775 feet deep, to complete the wells in a production handling agreement for processing the oil and gas reserves. 

There were only 13 active oil rigs in the U.S. Gulf of Mexico as of Oct. 30, down from roughly 21 rigs one year ago, according to Baker Hughes data. There were only 9 active oil rigs in the Gulf of Mexico in 2016, a particularly low point since 2011. In Louisiana, there were 37 active rigs onshore as of late October, according to Baker Hughes data, down from 56 rigs one year ago. 

Acadiana Business Today: Royville project in downtown Youngsville has first occupant; Work to begin on second building

Email Kristen Mosbrucker at kmosbrucker@theadvocate.com.