Beacon Offshore Energy, a Texas-based exploration and production company, has initiated oil and natural gas production from the Shenandoah field located in the Gulf of America.
The first of four wells started producing on 25 July. The company plans to boost the output of these Phase 1 wells to a total of 100,000 barrels of oil per day (bopd) during the third quarter of this year.
The development plan for Shenandoah includes a second phase, which involves drilling two more wells and installing a subsea booster pump, with completion expected by mid-2026. These developments exploit high-pressure technology at depths of approximately 30,000 feet true vertical depth.
The Shenandoah floating production system (FPS), located approximately 241km off the coast of Louisiana at a water depth of around 5,800ft, is now operational. This facility has a nameplate capacity of 120,000bopd and 140 million cubic feet per day (mmcfd).
Designed to support regional resource development, the Shenandoah FPS will also accommodate resources from the Monument and Shenandoah South discoveries. Together with Shenandoah, these fields are projected to contain nearly 600 million barrels of oil equivalent (mmboe).
Beacon chairman and CEO Scott Gutterman said: “The Shenandoah first production milestone demonstrates Beacon’s ability to safely deliver industry leading developments in a cost-effective fashion. I would like to personally congratulate and thank our employees, contractors, and vendors for their tenacity, dedication, and technical expertise in delivering this important project.”
The Shenandoah FPS departed from HD Hyundai Heavy Industries’ shipyard in Ulsan, South Korea, in December 2024 and subsequently arrived in the Gulf of America. In the same month, Beacon and its partners approved the next development stage at Shenandoah, termed Phase 2.
This second phase will involve drilling two additional wells, increasing throughput capacity to 140,000bopd through debottlenecking by early 2026, and installing a subsea booster pump to reduce well back pressure.
Additionally, Beacon has announced the approval of developing the Shenandoah South discovery in Walker Ridge 95, positioned in water depths of 5,800 to 6,000ft.
According to Beacon, the proximity to the Shenandoah FPS allows for cost-efficient development through a 4.8km flowline and riser connection. Initial production from the first well in Shenandoah South is anticipated in Q2 2028.
The total estimated resources for Shenandoah South amount to 74mmboe. Beacon is collaborating with Houston Energy, HEQ Deepwater, and Navitas Petroleum on this project.
