- Winters well flowing 8,200 BOE/d
- Onyx well flow rate increases to 3,250 BOE/d
- Camshaft well encountered multiple pay zones
- Current production approaching 50,000 BOE/d
HOUSTON, Feb. 27, 2012 (GLOBE NEWSWIRE) -- Energy XXI (Nasdaq:EXXI) (LSE:EXXI) today provided an operational update detailing successful results at its core producing fields.
At the Grand Isle 16 field, the Winters well (100% WI/78.5% NRI) has been drilled to 16,500 feet true vertical depth (TVD), encountering 83 net feet of pay in the K-2 sand. The well was completed and placed on production at 45 million cubic feet per day (MMcf/d) and 711 barrels of condensate per day, gross, resulting in net production of 6,425 barrels of oil equivalent per day (BOE/d). "The Winters well is an outstanding success, producing at one of the highest rates of any well on the Gulf of Mexico shelf today," Energy XXI Chairman and CEO John Schiller said.
In the Main Pass 72 field (100% WI/83% NRI), the Onyx well has seen continued improvement in rates. In June 2011, the well was completed and placed on production at 2,100 barrels a day of crude oil, gross. Onyx is currently producing 3,100 barrels of oil per day, indicating the well penetrated a larger reservoir than originally estimated. "The increase in flow rates and stable flowing tubing pressures from the Onyx well, combined with recent pressure transient analysis, appear to indicate that we have under-estimated the size of the discovery," Schiller said. "We are planning both a recompletion and a development well to better delineate the reservoir. At 3,100 barrels of oil per day, Onyx is currently the highest-producing oil well on the Gulf of Mexico shelf."
At the South Timbalier 54 field (100% WI/ 87% NRI), the Camshaft well has been drilled to 12,743 feet, with preliminary estimates of approximately 180 net feet of oil pay in the G-6B, G-7, G-8 and G-9A sands. Completion activities are ongoing and the well is expected to be on production in March at an estimated 1,900 BOE/d gross.
At West Delta 73 (100% WI/83% NRI), the Magnum well was drilled to 8,500 feet, encountering 50 feet of net oil pay in the F-30, F-35 and F-40 sands. The well is currently being completed and production is expected in March at an estimated 1,000 BOE/d gross.
"The operating results we are delivering continue to exceed our expectations," Schiller said. "Current production is approaching 50,000 BOE/d and we have more than a dozen additional wells scheduled to come on production between now and our June 30 fiscal year end. We reaffirm our fiscal 2012 production estimate of 46,000 to 50,000 BOE/d."
Forward-Looking Statements
All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. Energy XXI assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
Competent Person Disclosure
The technical information contained in this announcement relating to operations adheres to the standard set by the Society of Petroleum Engineers. Bobby Poirrier Jr., Vice President of Corporate Development, a registered Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement.
About the Company
Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Seymour Pierce is Energy XXI's listing broker in the United Kingdom. To learn more, visit the Energy XXI website at www.EnergyXXI.com.
The Energy XXI logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3587
GLOSSARY
Barrel – unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.
BOE – barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.
BOE/d – barrels of oil equivalent per day.
MMcf/d – million cubic feet of gas per day.
Net Pay – cumulative hydrocarbon-bearing formations.
NRI, Net Revenue Interest – the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest.
TVD –total vertical depth of a well.
WI, Working Interest – the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations.
Workover / Recompletion – operations on a producing well to restore or increase production. A workover or recompletion may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.