Based in Perth, Western Australia, Prominence Energy NL (ASX:PRM) is an O&G exploration and development company, with primary asset - Bowsprit oil project in the Gulf of Mexico, US. The primary objective of the Company is to get the field on to production, as well as carefully identify and secure additional follow up project leases.
Prominence Energy holds 100 per cent working interest in two granted petroleum leases covering 1,154 acres in the Breton Sound Area, shallow transitional waters of Louisiana, 70km southeast of New Orleans.
The Company identified the project location after an extensive review of opportunities and the project is believed to offer a niche suitable for PRM. Bowsprit Oil Project is in a strategically good location with upside potential in prospective resources. Location within the Gulf of Mexico shallows gives the project a ready availability of critical infrastructure and expertise.
Breton Sound - The Focus Area for Prominence Energy
The Breton Sound Basin covering a total area of approximately 676,400 acres is located in southeast Louisiana.
The Breton Sound and surrounding inland shallow waters boast a prolific hydrocarbon basin, which was developed at an extensive level during 1950s-1990s.
In Prolific Hydrocarbon Province:
- Since 1978, St Bernard and Plaquemines Parishes (Red Oval) have produced 1.2 billion barrels of oil and 5.2 trillion cubic feet of gas
- There are favourable sedimentary circumstances, which when combined with a variety of structures, would provide excellent conditions for accumulation
- Miocene sediments have yielded more than 3 billion barrels of oil from ~380 fields along the Louisiana Gulf Coast
Bowsprit Field Potential:
The field has a history of modest oil production in the 1960s before the advent of 3D seismic and horizontal drilling and other modern exploration techniques.
Few facts about the field are:
- Lease area contains several historical fields, including an undeveloped oilfield
- Lease overlies a field first developed by Shell in the 1960s for deep gas (450ft column, ~46bcf produced)
- Oil & gas has been proven to flow from shallower oil and gas zones but was too small to fully develop in 1960s (76,000bbls &1bcf) – “Bowsprit”
- Minimum economic field size is <0.5 million barrels
- Secondary potential in additional sands
Bowsprit Development Plan:
The Bowsprit Oil Project is estimated to host contingent resources of 0.76 million barrels (2C gross), and unrisked prospective resources of an additional 1.72 million barrels (best; gross).
Prominence Energy has selected a primary well location for the project. The Company plans to drill a vertical pilot hole at the project and then pull back and deviate the well to place a horizontal well between former production wells in the proven (flowed) Upper Miocene Sand.
The Company recently released its activities report for the December 2019 quarter, during which PRM secured all the three required permits to drill the first Bowsprit well and appointed farm-out agents to advance discussions with several potential partners for executing a deal/s.
For an in depth look on PRM December quarterly report, please read Prominence Energy Releases December Quarter Update; Secures Required Permits to Drill at Bowsprit Oil Project
Depending on obtaining funding and/or executing farm-out deal/s, Prominence Energy plans to drill the first well at the project area in the second quarter of 2020, with the coming appraisal drilling designed to demonstrate the potentially robust economics of the project. Additionally, the Company expects to establish early production in the third quarter of 2020, subject to the results of the appraisal well.
If the appraisal well is successful, PRM intends to suspend the well as a future producer.
The PRM stock last traded at $ 0.001 on 3 February 2020, with a market capitalisation of $ 1.32 million.