--> Abstract: The Gulf of Mexico Deepwater Play: 50 Years from Concept to Commercial Reality, by N. R. Braunsdorf and G. S. Steffens; #90923 (1999)

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BRAUNSDORF, NEIL R., Shell Exploration and Production Technology Company, GARY S. STEFFENS, Unocal 76

Abstract: The Gulf of Mexico Deepwater Play: 50 Years from Concept to Commercial Reality

The Gulf of Mexico deepwater play has over 100 announced discoveries totaling 5 BBE in proven reserves. It is estimated that the play's potential development may exceed 15 BBE. This turbidite reservoir play begins on the upper continental slope and extends onto the abyssal plain, encompassing present-day water depths of 1500-ft. to 9000-ft. From an historical perspective, the deepwater play has taken more than 50 years to evolve from a sand reservoir concept to a successful commercial reality.Three key factors led to this emerging success story: (1) a long term, creative vision held by tenacious explorers, (2) an economic environment that had a high tolerance for risk and experimentation in the early exploration efforts, and (3) E & P technology advancement closely linked to the opportunity and its profitability.

The initial concept of the existence of deepwater reservoirs in the northern Gulf of Mexico had its origin in several pioneering studies conducted in the 1940s and 50s. Frontier probe studies in the 1960s confirmed hydrocarbon charge, reservoir potential, and an abundance of salt structures (potential traps) on the continental slope. Early exploration efforts in the late 1970s and early 80s tested the play limits beyond the present-day shelf margin and encountered numerous hydrocarbon-bearing turbidite sands.With the inception of area-wide federal lease sales, those early discoveries created a flurry of leasing activity and exploration drilling for the next few years. Many of the major discoveries which are currently producing or being developed were delineated during this period. By the late 1980s, development was underway for several of these discoveries. However, serious concerns remained about the profitability of the play with the prospect of $20/barrel oil or less.The tremendous technical challenges and uncertainties, coupled with the high cost of development, forced the industry to focus their efforts on how to make the current discoveries profitable.Technical advancements concentrated on creating cost effective production systems and improving our understanding of the connectivity and continuity of these reservoirs.The recent revitalization of the play is largely due to these technical advancements and the timely realization of the potential high rate production from several deepwater developments.The industry's collaborative efforts in building "infrastructure corridors" has also accelerated development activities and extended the exploration opportunities into the ultra-deepwater (>5000 ft.).

Several points are noteworthy from the exploration and development activities in the deepwater Gulf of Mexico.They are:

· Most of the deepwater fields were discovered using 3-D seismic data. However, 3-D seismic data is essential for efficient appraisal, development, and imaging difficult exploration targets.
· Significant improvements in our understanding of deepwater basin-fill history came from regional tectono-stratigraphic studies, seismic facies analyses, and shallow analog studies.
· Improved models of reservoir architecture were derived from the integration of field, outcrop, and shallow analog data.
· The large capital expenditures necessary to develop discoveries in the deepwater Gulf of Mexico require that wells be capable of producing high per-well ultimates at high sustained rates. Many of the deepwater reservoirs meet this criteria with per-well ultimate recoveries of more than 20 MMBE and producing at rates of more than 10,000 BOPD.
· Reservoirs with high per-well ultimates have several performance characteristics in common: large connected hydrocarbon pore volumes (> 40,000 Ac-ft) often in structurally simple traps and extensive architectural continuity, thick and highly permeable sands, high recovery efficiencies (strong aquifer support is common), and favorable hydrocarbon properties and pressures.
· Most deepwater reservoirs, regardless of architecture, can produce high initial rates because of their high permeabilities and thicknesses (kh> 25,000 md-ft).

AAPG Search and Discovery Article #90923@1999 International Conference and Exhibition, Birmingham, England