Since the finalization of its restructuring on December 30th, 2016, Energy XXI Gulf Coast (ticker: EXXI) has begun taking steps to bring additional production online and optimize existing production.
EXXI in the GOM
Energy XXI itself is focused solely on operations in the Gulf of Mexico, where it holds 109.4 MMBOE of proved reserves, of which 80% is oil, 2% are NGLs, and 18% is gas.
The company holds 168 blocks, with 57 producing fields and 616 gross producing wells. Energy XXI itself holds 439,294 net acres and an additional 143,208 undeveloped acres. Adding to its future growth potential is Energy XXI’s 17,000 square miles of seismic inventory.
As of Q1, 2017, the company averaged approximately 41,000 BOEPD of production, with the intent to resume drilling operations beginning in June, 2017 and undergo re-completions throughout 2017.
Workovers, recompletions on the docket
Scott Heck, Energy XXI’s COO, reported in the Q1 earnings call, on a successful workover and recompletion project in the company’s South Timbalier 54 field, where the company underwent the design and implementation of a new gas lift supply line, recompletion operations, and the addition of gas lift capability in two wells.
Heck was enthusiastic about the project which demonstrated the company’s, “ability to identify good upside opportunities and execute safely and under budget.”
In its resumption of drilling activities, Heck noted that Energy XXI will be focusing on its West Delta area, where it has planned between two and four development plans for the remainder of 2017. The two recompleted wells have shown over 1000 BOEPD of production. Energy XXI has between 10 and 15 additional recompletions planned for 2017, and have identified over 100 potential recompletion projects for the future.
The company has also identified over 40 potential drilling sites, across its assets.
The company estimates that it will have a 2017 capital budget between $140 and $170 million, of which it will allocate between $50 and $70 million to plug and abandon operations. Energy XXI also expects that its capital budget will be funded by its internal cash flow and available cash.
Energy XXI is presenting at EnerCom’s The Oil & Gas Conference® 22
Energy XXI will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
