ABSTRACT

The Federal leases on the continental shelf, offshore Gulf of Mexico, are in a mature state of development. Many fields are reaching their productive and/or economic limits as defined by their operators, and are being released. This results in excellent opportunities for independents who recognize the importance of modern technology and apply it to their evaluation process.

West Delta Block 35 was originally divided into two leases. The southern 3/4 block lease was released in 1991 having produced 92.3 Bcf and 3.5 MMBL since 1970. The northern 1/4 block lease was released in 1983 having produced 64.3 Bcf and .25 MMBL since 1974. The northern 1/4 was subsequently leased in 1985 and expired in 1991 with no activity having transpired. The north 1/4 and the southern 3/4 were combined and the entire block was available at the 1992 lease sale.

The West Delta 35 block was evaluated utilizing the following methods:

1. History (leases, companies involved, and changing economic conditions)
2. Well records (production, tests, recompletions, previous permits, and related activity)
3. Geological evaluation
   1. Correlation
   2. Analysis utilizing PC - based software with user - defined saturation equations and multiple models to determine hydrocarbon bearing zones
   3. Integration with all other available data (Pressure data, sand parameters, volumetrics, etc.)
4. Seismic Evaluation
   1. Integration with well log data
   2. Interpretation utilizing workstation technology
   3. Seismic modeling utilizing well data

It was determined that significant reserves remained in an updip position on the north 1/4 of the block in two reservoirs with an additional reservoir having been penetrated but never produced. Additional potential was also recognized on the southern portion of the block.

The lease was acquired in the 1992 lease sale and the northern prospect drilled in late 1992 and early 1993. The well found pay in three sands. Two were tested (prior to acidization) for a combined rate of 12.8 MMCFD with the well still cleaning up. The well proved up significant reserves in two previously produced reservoirs.