Rocksource ASA (Rocksource), through its subsidiary, Rocksource Gulf of Mexico Corporation (RGOM) has been awarded nine leases in the Western Gulf of Mexico Lease Sale 210. Total cost for the nine lease awards is about $3.8 million. These leases contain both previously discovered oil (the Trident field) and significant exploration potential. Rocksource estimates that the awarded leases will add exploration potential of about 70 million barrels of oil equivalents (mmboe) net risked resources.
In addition, the awards include the Trident discovery, which the previous operator (Unocal/Chevron) estimated to contain in excess of 100 million barrels of discovered resources.
The leases awarded are in the Western Gulf of Mexico, in the Alaminos Canyon and East Breaks area.
Trygve Pedersen, chief executive officer commented: “We are very pleased to announce these additions to our Gulf of Mexico portfolio. Following these awards we have established a significant presence in the Gulf within a short time frame. We are now in a position to high grade a portfolio of low risk, short to medium term drilling opportunities in the Gulf of Mexico. In addition, with the award of the Trident field, we have been given the opportunity to complete further technical review of the discovery to get a better understanding of its commercial potential.”
Located on Alaminos Canyon, Trident was discovered in July 2001 by Unocal. Three wells were drilled on the acreage, all of which encountered hydrocarbons, but the project was never sanctioned for development. Unocal merged with Chevron in 2005, and in 2008 the operator Chevron returned the leases at the expiry of the primary lease term.
RGOM will act as lease operator and will have 100% equity in the new leases. The leases have a ten year lease period, and no further work programme commitments. Rocksource will now test the prospectivity, and delineate the discovered resources using its proprietary electromagnetic (EM) technology to develop a high graded portfolio from which short to medium term drilling candidates will be selected. The high equity level gives commercial flexibility for optimizing the forward plan for exploration.
The leases have formally been awarded to Rocksource’s GoM partner, Focus Exploration LLC (Focus), but will be transferred to RGOM following the approval of RGOM as a lease holder by the United States Minerals Management Service (MMS). A formal approval is expected shortly.
The agreement between Focus and RGOM also includes further leases that were bid for in the Western Gulf of Mexico Lease Sale 210. Focus is the apparent high bidder, but the final decision for award or not from the MMS is still pending.
Rocksource is a company engaged in geology and petroleum research for the oil industry, as well as exploration and production.