Our activities in the Gulf of Mexico are primarily focused on deepwater where we have built an inventory of active projects and others are under development.
Although our Company’s roots were in the shallow waters of the GOM, we have diversified our asset base over the last decade. Today, we retain a selective exploration-focused initiative on the shelf and a balanced program of exploration and development drilling in the deepwater.
In the deepwater Gulf of Mexico, we have been active in recent lease sales and expect to continue this effort in 2008. We now have an inventory of prospects that will allow us to drill four or five exploratory wells per year over the next several years.
In deepwater, we currently have three producing fields - Wrigley, Rigel and Glider - and visible future production growth from our PowerPlay and Fastball developments.
Wrigley (MC 506) This is our first operated field in deepwater that we discovered in 2005. Initial production commenced during July 2007. We operate and have a 50% working interest.
Rigel (MC 296) This field began production in 2006 and is a single-well development. It is outside operated, and we own a 25% working interest.
Glider (GC 248) Began production in 2004. It is outside operated, and we own a 25% working interest in this two-well subsea tieback.
PowerPlay Development (GB 258) PowerPlay is a single-well field under development. Plans include a sub-sea tieback to Baldpate with first production expected in the second half of 2008. We have a 35% interest in this outside-operated field.
Fastball Development (VK 1003) Fastball found approximately 90’ of net gas pay in the 2nd quarter of 2007 and tested at 43 MMcf/d and 3,000 BCPD (gross). This production will be tied to existing infrastructure. First production is expected in 2009. We operate Fastball with a 66% working interest.
At year-end 2007, our net daily production from deepwater was nearly 40 MMcfe/d, and we owned interests in 61 leases in deepwater (approximately 300,000 gross acres).
For a map of our Gulf of Mexico assets, click here.
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