WESTERN HEMISPHERE: Energy XXI joins Blackbeard hunt

Energy XXI Ltd. has signed a deal to farm into the South Timbalier Block 168 No. 1 exploration well, or the Blackbeard well, in the shallower waters of the Gulf of Mexico. Energy XXI agreed with McMoRan Exploration Co. to earn a 20 percent working interest in five blocks encompassing the Blackbeard West prospect.

Energy XXI will pay up to $5.5 million for the right to participate in the re-entry of South Timbalier Block 168 and for a share of additional acreage.

The original Blackbeard No. 1 exploration test in 70 feet of water offshore Louisiana was drilled to 30,067 feet but was abandoned. McMoRan resumed operations in March hoping to deepen the well to to 31,267 ft. to evaluate Miocene targets. Blackbeard West participants include operator McMoRan with 32 percent interest, Plains Exploration Co. (35 percent) and Energy XXI with 20 percent.

Source: Scandoil

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