Fossil Oil is planning a new drilling project named Fossil-North Eagle Bay Offshore JV – I – 2015 offshore Texas.
The project involves directionally drilling a lower risk offshore prospect in 12ft of water to a depth of 14,800ft to potentially encounter six separate reservoirs within the prolific Frio-Vicksburg trend. The trend is found between two known producing fields, the Ship Channel-Vinceburg field and the Eagle Bay field in Galveston Bay, Texas.
According to Fossil’s geologists and geophysicists, the initial well could prove up as much as 24.7 MMbbl of oil and condensate and 102.6 Bcf of gas from these six reservoirs. This could represent an estimated US$1 billion in reserve value, based on $55 oil and $3 gas, to the 100% ownership.
Fossil formed a joint venture to own a 20% working interest in the entire 1920 acre project. Several additional well locations could be proven up by this initial well and investors have the right of first refusal, or pre-emptive right, to participate in any subsequent well, reports the company. The 1920 acre lease tract is in Galveston Bay, Chambers County, Texas, and will be drilled after the hurricane season this year.
"For years, I have been looking for the opportunity to participate in an offshore drilling project for our investor base," explained Dennis Kittler, Fossil Oil's president. "The primary hurdle has been the enormous costs involved in generating deepwater prospects. This is why 90% of the participants in offshore drilling projects are larger independent and major oil companies."
After 40 years in the business, Kittler's dream came true when Fossil Oil acquired the last working Interest percentage in the 1920-acre offshore state tract, North Eagle Bay Prospect, in April. Fossil Oil's team of specialists reviewed and analyzed 3D seismic data, including the lower cost of drilling a shallow water well, which resulted in an overwhelming approval to participate. As managing partner, Fossil created the Fossil – North Eagle Bay Offshore JV – I – 2015.
The prospect was generated using a 30sq mi 3D seismic survey covering the Western Galveston and Trinity Bay area. This ultra-high-resolution 3D data was reprocessed with the newest 3D seismic software by Geotrace Technologies of Houston, reports Fossil.
"This offshore project has tremendous economic potential. Fossil could possibly drill three to four additional wells," says Kittler. “Each well could reflect the anticipated initial production rate of 1250 boe/d and 22 MMcf/d. Many of the surrounding wells drilled to this prospect have done this repeatedly.”
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