Otto Energy has announced that it has now signed final documents confirming the entry into a joint venture with Talos Energy which will see it earn a 16.67% working interest in the Green Canyon 21 (GC-21) lease in the Gulf Mexico through paying 22.22% of the cost of the drilling of the 'Bulleit' appraisal well. This transaction was first announced on 29 March 2019.
The Green Canyon 21 lease and prospect were initially owned and generated by EnVen, with EnVen selling a 66.67% working interest to Talos. Talos later offered a 16.67% working interest to Otto.
The Noble Don Taylor drillship is now on location and drilling of the Bulleit well is expected to commence over the next few days.
Bulleit is an amplitude-supported Pliocene prospect with similar seismic attributes to the analogous sand section in Talos’s Green Canyon 18 field, which has produced approx. 39 MMBoe to date. The Bulleit prospect sits in approx. 1,200 feet of water and is 10 miles (16 kms) from the GC18A platform.
The well is expected to take approx. 42 days to drill on a trouble free basis. Any material updates will be provided during drilling.
Otto’s Managing Director, Matthew Allen, commented: 'Otto is excited to see thecommencement of drilling at the Talos operated Green Canyon 21 Bulleit prospect so quicklyafter announcing the initial transaction only one month ago. Otto is participating in a highly active drilling campaign during 2019 and looks forward to the results of this well before the end of the quarter.'
