Why Breton Sound Area for O&G Explorer and Developer, Prominence Energy?

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.

Must Read: Why Sun Resources Chose Bowsprit Oil Project?

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.


Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK