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Appraisal and Development
North Platte.
On December 5, 2012, we announced a significant oil discovery at our North Platte prospect on Garden Banks
Block 959 in the deepwater U.S. Gulf of Mexico. Based on extensive wireline evaluation, the discovery well encountered over 550
net feet of oil pay in multiple high-quality Inboard Lower Tertiary reservoirs. We conducted bypass coring on the North Platte #1
exploration well, which provided additional information as we continue our evaluation of the North Platte oil discovery and plans for
further appraisal and development. The North Platte #1 exploration well is located in approximately 4,400 feet of water and was
drilled to a total depth of approximately 34,500 feet.
We completed drilling the initial North Platte appraisal well in the fourth quarter of 2015. This well was successful and
encountered over 550 feet of net oil pay, which is similar to the discovery well, but with evidence of better developed reservoirs. We
have recently completed additional sidetrack appraisal drilling operations at North Platte, which were successful and encountered
approximately 500 feet of net oil pay in what appears to be excellent reservoir quality rock. We are currently conducting logging and
evaluation operations on this sidetrack well. While evaluation of the well results is ongoing, pressures and fluid samples taken in the
sidetrack well indicate that the rock and reservoir properties are among the best that we have encountered in the Inboard Lower
Tertiary trend. We intend to conduct further appraisal drilling at North Platte in the second half of 2016. We are conducting reservoir
fluids analyses and subsea studies to support our appraisal and development efforts at North Platte. Reservoir characterization and
certain geologic modeling studies are ongoing in order to better understand reservoir continuity, productivity and recovery
characteristics of the field. The primary terms of certain leases covering our North Platte project are scheduled to expire in October
2016. We expect to hold these leases and perpetuate the acreage associated with them by conducting continuous operations, meaning
that we cannot discontinue operations at North Platte for more than 180 days or such leases will terminate. The North Platte field is in
the early stages of the project development life-cycle and will require substantial additional evaluation and analysis, including
additional appraisal drilling, prior to preparing a development plan and seeking formal project sanction. We are the operator of North
Platte and own a 60% working interest.
Shenandoah.
The Shenandoah field is located approximately 200 miles south of the Louisiana coast in 5,800 feet of water in the
Walker Ridge area. In early 2009, Anadarko, as operator, drilled the Shenandoah #1 exploration well into Inboard Lower Tertiary
horizons and encountered net oil pay approaching 300 feet. This well, located in approximately 5,750 feet of water in Walker Ridge
Block 52, was drilled to approximately 30,000 feet. The Shenandoah #2 appraisal well was spud in the third quarter of 2012 in
approximately 5,800 feet of water, about 1.3 miles southwest of the Shenandoah #1 exploration well and encountered more than 1,000
net feet of oil pay in multiple high quality Inboard Lower Tertiary reservoirs. The Shenandoah #3 appraisal well was spud in the
second quarter of 2014 and evaluated the same well-developed reservoir sands 1,500 feet down-dip and 2.3 miles east of the first
appraisal well. This well found an expanded geologic reservoir section, confirmed excellent reservoir qualities and delineated the
potential oil-water contacts of the field. The Shenandoah #4 appraisal well was drilled in the fourth quarter of 2015 and tested the
updip extent of the basin. The subsequent Shenandoah #4 sidetrack encountered over 600 feet of net oil pay, extending the lowest
known oil column downdip. Anadarko, as operator, is currently evaluating development concepts for Shenandoah. The primary terms
on certain leases covering our Shenandoah project expired in 2014 but are being held by continuous operations on the Shenandoah
project, meaning that we cannot discontinue operations at Shenandoah for more than 180 days or such leases will terminate. We
expect additional appraisal drilling on Shenandoah during 2016 and that Anadarko will eventually file for approval of a Suspension of
Production in order to perpetuate this acreage. The Shenandoah field is in the early stages of the project development life-cycle and
will require substantial additional evaluation, appraisal drilling, and analysis prior to the preparation of a development plan and
seeking formal project sanction. We own a 20% non-operated working interest in the Shenandoah field.
Anchor.
The Anchor field is located approximately 140 miles from the Louisiana coast in 5,183 feet of water. The initial
Anchor exploration well was drilled in late 2014 to a total depth of 33,749 feet and encountered 690 feet of net oil pay in multiple
Inboard Lower Tertiary horizons. In the second half of 2015, an appraisal sidetrack well was drilled down dip to delineate the Anchor
discovery well. The appraisal well encountered 694 feet of net oil pay in a hydrocarbon column of at least 1,800 feet in Inboard Lower
Tertiary reservoirs. Chevron Corporation (“Chevron”), as operator, spud the Anchor #3 appraisal well in February 2016. The primary
terms on certain leases covering our Anchor project expired in 2014 but are being held by continuous operations on the Anchor
project, meaning that we cannot discontinue operations at Anchor for more than 180 days or such leases will terminate. We expect that
Chevron will eventually file for approval of a Suspension of Production in order to perpetuate this acreage. The Anchor field is in the
early stages of the project development life-cycle and will require substantial additional evaluation and analysis, including additional
appraisal drilling, prior to preparing a development plan and seeking formal project sanction. We own a 20% non-operated working
interest in the Anchor discovery unit.
Exploration
Goodfellow
. We plan to drill our Goodfellow #1 exploration well following the final completion of bypass coring and sidetrack
operations on the North Platte appraisal well. The Goodfellow #1 exploration well will target Inboard Lower Tertiary horizons. The
