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LLOG Exploration and Repsol Sign an Asset Exchange and Joint Participation Agreement in the Deepwater Gulf of Mexico

COVINGTON, La. and THE WOODLANDS, Texas, April 29, 2019 (GLOBE NEWSWIRE) -- LLOG Exploration Offshore, L.L.C. (“LLOG” or the “Company”) and Repsol E&P USA Inc. (“Repsol”) today announced the signing of an Asset Exchange and Joint Participation Agreement in the deepwater Gulf of Mexico.  The agreement provides for the drilling of a delineation well at Repsol’s Leon discovery and covers Keathley Canyon blocks 642, 643, 686 and 687.  In addition, Repsol will acquire an interest in the LLOG-operated discovery Moccasin in Keathley Canyon 736.

Leon is a discovery drilled by Repsol in late 2014 on Keathley Canyon block 642 and is located about 200 miles offshore Louisiana in approximately 6,000 feet of water.  The discovery well was drilled to a total depth of about 32,000 feet and encountered nearly 500 feet of high quality net oil pay in multiple sands in the Lower Tertiary formation but has not yet been fully delineated.  The new agreement with LLOG provides for the drilling of a delineation well this coming summer which will be operated by LLOG.  LLOG will have a 33% working interest in the well while Repsol will have a 50% working interest. Following the scheduled delineation drilling, potential development options will be evaluated for this field.

Moccasin is a discovery made on Keathley Canyon 736 in 2011 in over 6,500 feet of water.  The discovery well was drilled to a total depth of over 31,000 feet finding nearly 400 feet of net oil in the Lower Tertiary.  LLOG subsequently licensed the block in a 2017 Lease Sale.  Moccasin and Leon are less than 20 miles apart which provides the opportunity for co-development.  LLOG will retain a 31.35% working interest in the field and Repsol will acquire a 30% interest in Moccasin.

Currently, LLOG and Repsol are joint owners in the ongoing development of the Buckskin discovery which is located on Keathley Canyon blocks 785, 828, 829, 830, 871 and 872 in approximately 6,800 feet of water.  The initial phase of this large-scale, deepwater project consists of two development wells which were drilled to approximately 29,000 feet, also targeting the Lower Tertiary formation.  First production from Buckskin is expected in mid 2019.  LLOG is the operator of Buckskin. 

Philip LeJeune, President and CEO of LLOG, commented, “We are extremely pleased to sign a significant agreement with Repsol, a highly respected international multi-energy company. We have worked well together at Buckskin and the delineation of the potentially significant discoveries at Leon and Moccasin is another perfect match for the deepwater technical knowledge and development expertise that both our companies possess. These highly prospective deepwater discoveries are in close proximity and are targeting the same Lower Tertiary formation that we are exploiting at Buckskin. We look forward to working together with Repsol on other future deepwater developments in the Gulf of Mexico and greatly value our strong working relationship.  2019 is a truly exciting year for LLOG as we pursue a number of significant deepwater Gulf of Mexico development projects.”

Tomas Garcia Blanco, Repsol’s Upstream Executive Managing Director, commented, “We 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 collaboration to a new level. We believe we have the perfect alliance to develop assets with an efficient mindset, turning challenges into opportunities that create value for our stakeholders.”

About the Company

LLOG Exploration Company, L.L.C. is one of the largest privately-owned exploration and production companies in the United States.  LLOG’s corporate headquarters is in Covington, Louisiana, and the Company has an office in Houston, Texas. 

For additional information, please contact Rick Fowler at rickf@llog.com or visit the Company’s website at www.llog.com.

About Repsol

Repsol is a global multi-energy company with activity throughout the energy value chain, including exploration, production, refining, chemicals, trading, retail sales and new energy. Repsol has upstream activity in 25 countries and produces 700,000 barrels of oil equivalent per day.

Repsol has one of Europe’s most efficient refining systems, capable of processing over one million barrels of crude oil daily. It distributes and sells fuels and lubricants through its more than 4,700 service stations in Spain, Portugal, Peru, Italy and Mexico. In addition, it is the largest player in Spain’s liquefied petroleum gas (LPG) market.