Statoil Gulf of Mexico LLC has farmed down its 100% working interest in the Monument prospect, bringing in two non-operating partners, Anadarko US Offshore LLC and Venari Offshore LLC, to participate in this subsalt Paleogene play. The formation of this new partnership might indicate that Statoil is setting the stage to test this prospect. But as of early March 2018, the Bureau of Ocean Energy Management (BOEM) has not yet issued any drilling permits for the planned Monument wells that are situated in Walker Ridge block 271 (OCS G35080) and Walker Ridge block 272 (OCS lease G35081). On 1 September 2015, the BOEM approved the five-well, initial Exploration Plan (EP) submitted by Statoil for the prospect that lies in up to 6,700 ft (2,042 m) of water in the deepwater Central Gulf of Mexico. The prospect is in the northwest quadrant of the Walker Ridge (WR) protraction area some 200 miles (320 km) south-southwest of the onshore support base of Port Fourchon, Louisiana. Statoilâs USD 81.7 million bonus for the WR block 271 was the highest bid on a block at Sale 227, held in March 2013. Statoilâs EP (N-9886) outlines the companyâs intention to install wellheads, drill, and temporally or permanently abandon three wells (Locations A, B and C) in WR block 271 and two wells (Locations A and B) in WR block 272. The operator plans to use the dynamically positioned drillship to conduct operations at the prospect and has allocated 175 days of rig time per well with each well designed to bottom within the block it spuds. The water depth at the proposed drill sites ranges from 6,067-6,764 ft (1,849-2,062 m). According to the EP, Statoil had tentatively planned to begin operations in December 2015 by drilling the WR 271 âAâ surface location with the drillship positioned in 6,734 ft (2,053 m) of water in the SW/4 NW/4 NE/4 of WR block 271. The shallow hazard survey for the proposed WR 271 âAâ well shows that this borehole does not encounter the allochthonous salt canopy within surveyâs depth limit of investigation of 4,838 ft (1,475 m) below the mudline or 11,572 ft (3,527 m) below sea level. The Monument wells will target the Paleogene-aged Wilcox sand section as their primary objective with a proposed total depth of 34,122 ft (10,400 m). The prospect is proximal to other Paleogene exploration and appraisal activity including Marathonâs Solomon prospect five miles (8 km) to the northwest on WR block 225 and Chevronâs Lewis prospect immediately south of Monument. The Lewis and Solomon wells both tested the Wilcox section and were permanently abandoned as dry holes. About 15 miles (24 km) north of Monument lies Anadarkoâs Shenandoah prospect, an appraised Wilcox oil find discovered in February 2009.Â  Shenandoah has a gross recoverable resource range estimated from 165 to 300 MMboe. The status of the Shenandoah project is now in doubt after the operator Anadarko and ConocoPhillips withdrew from the project in February 2018. Â As of January 2018, Statoil owns a 41.67% working interest in the G35080 (WR-271) and G35081 (WR-272) leases and operates the acreage for participating partners Anadarko US Offshore LLC with a 41.66% stake and Venari Offshore LLC with the remaining 16.67% share. The government originally awarded these block to Statoil (66.67%) and Samson Offshore LLC (33.33%) at Central Gulf Sale 227, held on 20 March 2013. The partnership tendered the highest bid on a block for Sale 227, submitting a bonus USD 81,787,999 to win WR block 271. This signature bonus topped a USD 17.5 million offer made on the same block by Shell Offshore. Statoil and Samson outbid Anadarko to take WR block 272 with a bonus of USD 10,111,999 vs. Anadarkoâs USD 3.2 million tender offer. Standard-sized 5,760-acre (23.31 sq km) deepwater tracts, the subject leases have 10-year primary terms that started on 1 August 2013 and are scheduled to expire on 31 July 2023. In November 2017, Statoil became the sole owner of both leases when Samson sold its stake to Statoil. Statoil farmed out a 41.66% working interest in both leases to Anadarko and a 16.67% working interest to Venari thereby creating the partnership that now (March 2018) exists for the Monument prospect. This transaction took effect on 2 November 2017.
Statoil (->41,67%) has farmed down its 100% working interest in the Monument prospect (OCS G35080 and G35081), bringing in 2 non-operating partners, Anadarko (41,66%) and Venari Offshore (16,67%), to participate in this subsalt Paleogene play.