HOUSTON – Helix Energy Solutions Group (NYSE: HLX) reports an oil discovery at the Danny II exploration well at the Bushwood field in Garden Banks block 506, approximately 145 mi (233 km) offshore from Galveston, Texas, in the Gulf of Mexico. The Danny II exploration well encountered more than 70 ft (21 m) of net pay.
The Danny II exploration well was drilled to a TD of 14,750 ft (4,496 m), in water depths of approximately 2,800 ft (853 m). The well is being completed and probably will be developed via a subsea tie back system to Helix’s East Cameron block 381 platform 31 mi (50 km) to the north in 370 ft (113 m) of water. First production from Danny II is expected in the fourth quarter of 2012.
Helix holds a 50% working interest in the exploration well jointly with Deep Gulf Energy LP (operator) and Deep Gulf Energy II, LLC (both First Reserve Corporation and Quintana Capital backed entities), who own the other 50% working interest.
“Preliminary data from downhole test tools confirmed oil in the Danny II well with over 9,500 psi of bottomhole pressure. Additional testing to determine the composition of the reservoir fluids is on-going. We will provide an update on Danny II after completion,” said Johnny Edwards, president of Energy Resource Technology GOM, a wholly owned subsidiary of Helix.