Marathon to develop two Gulf of Mexico deepwater finds

Marathon Oil has approved $ 1.3 bn to develop its Droshky discovery and $ 300 mm for Ozona, both in the deepwater Gulf of Mexico. The company said it expects initially to book proved reserves of 29 mm boe for Droshky and Ozona, with additional bookings expected "upon completion and with production history."
Droshky, which lies in 2,900 ft of water on Green Canyon Block 244, is 140 miles south-southwest of Venice, Louisiana, and 18 miles southeast of Shell's Bullwinkle platform. The Noble Paul Romano rig will drill four development wells, which will be tied back to Bullwinkle.

Drilling will begin in 2009, and production is scheduled to begin in 2010, Marathon said. Net peak production is expected to be about 45,000 bpd of oil and 43 mm cfpd of natural gas, after royalties.
The initial Droshky discovery well and two sidetracks were drilled in 2007 to 21,190 ft TD, followed in 2008 by a second delineation well and sidetrack. Marathon holds 100 % working interest in Droshky.

Ozona is on Garden Banks Block 515 in 3,000 ft of water about 175 miles southeast of Sabine, Texas, and 6 miles from Shell's Auger platform. Marathon contracted the Noble Jim Day rig to complete a previously drilled appraisal well, which will be tied back to Auger. Production is expected to begin in 2011, with an anticipated net peak rate of about 6,000 bpd of oil and 13 mm cfpd of gas. Marathon holds a 68 % working interest in Ozona, with Marubeni holding 32 %.
The projected costs do not include capitalized interest, which is budgeted at the corporate level, said Marathon.