On 29 April 2019, Spanish operator Repsol SA and US independent LLOG Exploration Offshore LLC announced an asset exchange and joint participation agreement covering the Leon and Moccasin discoveries, a pair of subsalt Wilcox oil finds in the ultra-deepwater southeast Keathley Canyon (KC) area. The two companies have already worked together to develop Buckskin field, another nearby Wilcox project that is slated to come online in 2019 as a two-well subsea tieback to Anadarkoâs Lucius spar. The new agreement will allow the companies to continue their collaboration in an effort to move the Moccasin and Leon discoveries towards potential development. The Leon and Moccasin assets are less than 20 miles (32 km) apart with Moccasin lying about 15 miles (24 km) to the west of Buckskin. The subject discoveries are found in up to 6,700 ft (2,042 m) of water some 200 miles (320 km) south of the Louisiana shoreline.  At Leon, the agreement covers KC blocks 642 (G33335), 643 (G33336), 686 (G33341), and 687 (G33918). LLOG will operate and hold a 33% working interest and Repsol will own a 50% majority stake. The companies plan to drill a delineation well at Leon in the second half of 2019. LLOG has already submitted a one-well supplemental exploration plan in KC block 686 that is now under review by government regulators. Repsol suspended an appraisal well in this block in March 2016 without reporting results. Repsol made the Leon discovery in 2014, finding 492 net ft (150 m) of Wilcox oil pay within a 1,312 ft (400 m) column. The discovery well reached a total drilling depth of 31,774 ft (9,685 m) in KC block 642. Repsol E&P USA Inc. made the initial discovery with Ecopetrol America Inc. As of March 2019, Ecopetrol withdrew from the Leon project. Current Bureau of Ocean Energy Management (BOEM) records show Repsol with 100% working interest and LLOG operating. Three of the four Leon leases are on a short fuse, having a common expected expiry date of 31 July 2019. To hold these lapsing leases beyond their 10-year primary term, LLOG will need to resume operations at Leon or request and receive a suspension of operations from the Bureau of Safety and Environmental Enforcement (BSEE).  The new agreement calls for Repsol to acquire a 30% working interest in the Moccasin discovery on KC block 736 (G36077) while LLOG remains the operator with a 31.35% equity stake. While the LLOG and Repsol deal awaits government approval, BOEM records indicate the leaseâs current ownership includes LLOG, Ridgewood Energy and Beacon Offshore Energy. Chevron made the initial discovery at Moccasin in 2011. The company reported that the discovery well reached 30,379 ft (9,260 m) TVD and penetrated more than 380 feet (116 m) of net Wilcox oil pay. Following the collapse in the price of oil, Chevron dropped preliminary plans to develop the Moccasin and Buckskin discoveries in early 2016 and the lease holding Moccasin was relinquished in the same year. LLOG acquired the 10-year primary term lease containing the stranded Moccasin asset in 2017.  TomÃ¡s GarcÃ­a Blanco, Repsolâs Upstream Executive Managing Director, said, âWe have established a solid relationship with LLOG in the projects we have undertaken together so far, finding efficient and smart solutions to address hydrocarbons exploration and development projects in the Gulf of Mexico. This new project takes our partnership to a new level. We believe we have the perfect alliance to develop assets with a lean mindset, turning challenges into opportunities that create value for our stakeholders.â
LLOG Exploration and Repsol have signed an asset exchange and joint participation agreement covering the Leon and Moccasin a pair of subsalt Wilcox oil finds in the ultra-DW SW Keathley Canyon (KC) area. At Leon (LLOG op.33%, Repsol 50%) the agreement covers KC blocks 642 (G33335), 643 (G33336), 686 (G33341), and 687 (G33918), as well as the LLOG-operated KC 736 block.