Beacon Offshore Energy has turned the taps on oil and natural gas production from its Shenandoah field in the deepwater US Gulf. Oil and gas volumes from the first of four producing wells began on 25 July, and Beacon expects to ramp up the Phase 1 wells during the third quarter with a target aggregate deliverability of 100,000 BOPD.
Shenandoah Phase 2 includes two additional wells and a subsea booster pump with a fifth production well expected to be drilled and completed by mid-2026, according to the operator. The Shenandoah reserves, located at reservoir depths of approximately 30,000 ft true vertical depth, are being developed utilizing high-pressure 20,000-psi technology, which Beacon expects to facilitate development of other similarly situated fields in the Inboard Wilcox trend.
The field is the second 20k-psi field to come onstream in the deepwater US Gulf following Chevron’s Anchor project that started production last fall.
The Shenandoah floating production system (FPS), located on Walker Ridge Block 52 approximately 150 miles off the coast of Louisiana in a water depth of approximately 5,800 ft, can produce 120,000 BOPD of oil and 140 MMcf/D of natural gas.
The unit has been designed as a regional host facility that will enable development of additional resources including the Beacon-operated Monument and Shenandoah South discoveries which together with Shenandoah are expected to hold recoverable resources of nearly 600 million BOE.
Monument, in Walker Ridge Blocks 271, 272, 315, and 316, was discovered in 2020 and will be developed as a two-well subsea tieback to the Shenandoah host approximately 17 miles away. Final investment decision on Monument was taken in March 2024 with first oil expected around the end of 2026.
Additionally, Beacon has greenlit the development of the Shenandoah South (formerly Yucatan South) discovery located in Walker Ridge Block 95. The operator said the field’s proximity to the Shenandoah FPS will enable a cost-efficient subsea tieback development to be accomplished via a 3-mile flowline and dedicated riser connection to the host platform.
Shenandoah South is envisioned as a two-well development with initial production from the first well expected in the second quarter of 2028. Beacon estimates a total of 74 million BOE of 2P resources for Shenandoah South. According to partner Navitas Petroleum, to accommodate Shenandoah South production, capacity on the FPS will be increased from 120,000 to 140,000 BOPD.
Beacon operates Shenandoah South. Partners included Houston Energy, HEQ Deepwater, and Navitas Petroleum.
Beacon currently has one rig active in the deepwater US Gulf. According to the BSEE’s Deepwater Activity Weekly Report dated 22 July, drillship Ocean BlackRhino is on the operator’s Winterfell development in Green Canyon Block 944.