Who Dat JVs Approve Exploration Wells for Drilling

The Who Dat East appraisal/exploration well and the Who Dat South exploration well offshore in the U.S. Gulf of Mexico (GOM) have been approved for drilling by their respective joint ventures.

The operator of the assets, LLOG Exploration Company, L.L.C., has confirmed the drilling approvals, Karoon Energy Limited said in an announcement Wednesday on the Australian Securities Exchange. The total cost of the two wells is expected to be $67 million to $77 million net to Karoon.

Who Dat is a conventional deepwater oil and gas operation located in approximately 2624.7 feet (800 meters) of water offshore Louisiana within the federal waters of the U.S. GOM.

Who Dat East lies approximately 16.8 miles (27 kilometers) east of the Who Dat floating production system (FPS). The Who Dat East well, MC 509-1, is expected to spud in the first half of April using the Noble Valiant drill ship. LLOG and Karoon each own a 40 percent stake, while Westlawn Group owns the remaining 20 percent.

The aim of the well is to delineate a discovery made in 2001, and test additional targets in the Middle Miocene section. Karoon noted that Who Dat East is estimated to contain 17 million barrels of oil equivalent (MMboe) of gross unrisked 2C contingent resources and 35 MMboe of gross unrisked 2U prospective resources, with an aggregate geological probability of success estimated to be 62 percent. The well, which will be drilled as a deviated hole with a total measured depth of approximately 26,000 feet (7,925 meters), will take approximately 56 days to drill and evaluate.

The Who Dat South prospect is located approximately 6.8 miles (11 kilometers) southwest of the Who Dat FPS. The Who Dat South exploration well, MC 545-1 (LLOG), is expected to spud towards the end of the second quarter using the Seadrill West Neptune drill ship. LLOG owns a 40 percent stake in the prospect, while Karoon and Westlawn each own 30 percent.

The objective of the well is to test two targets in the Miocene section, with the shallower target being similar to the reservoir in the G-1 well in Who Dat. Karoon said the Who Dat South prospect is estimated to contain 31 MMboe of gross unrisked 2U prospective resources, with the geological probability of success estimated to be 52 percent. The well, which will be drilled as a deviated hole with a total measured depth of approximately 24360 feet (7,425 meters), is expected to take approximately 50 days to drill and evaluate.

As a result of the agreement to drill the Who Dat East and Who Dat South wells, Karoon said its total committed CAPEX for 2024 has increased to $117 million to 134 million, a boost of $67 million to $77 million. The Who Dat East exploration drilling costs include a two-for-one carry, capped at $23 million, the company noted.

Karoon said the contingent CAPEX of $33 million to $43 million relating to the Who Dat West exploration well is still subject to the approval of the joint venture.

The total estimated cost of the three well GOM drilling program of $100 million to $120 million, along with all other previously provided guidance, is unchanged, the Australia-based company said.

Karoon in December 2023 acquired interests in the U.S. GOM from LLOG for $720 million. The acquired assets include a 30 percent working interest in the Who Dat and Dome Patrol oil and gas fields and associated infrastructure, an approximately 16 percent working interest in the Abilene field and varying interests in adjacent exploration acreage.

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