Callon Petroleum Company Announces Significant Oil Discovery on Eugene Island Block 335

Strategic Insights -

Callon Petroleum Company has announced a major oil discovery on Eugene Island Block 335, following the drilling of the Eugene Island Block 335 No. A-3 well. The well has encountered approximately 170 feet of net oil and gas pay in four intervals, with one of the oil-bearing pay sands not seen in earlier wells. This discovery extends the Eugene Island 335 field to a new fault block and demonstrates the potential for further exploration in the area. With a 20% working interest in the block, Callon Petroleum Company is positioned to benefit from the ongoing development of this significant oil field.

Key Takeaways:

  • The Eugene Island Block 335 No. A-3 well has been drilled to a measured depth of 7,540 feet and a true vertical depth of 6,000 feet, encountering four intervals of net oil and gas pay.
  • The four intervals of net oil and gas pay are fault-separated from potentially productive reservoirs encountered in previously drilled wells, with one oil-bearing pay sand not seen in either of the two earlier wells.
  • The discovery extends the Eugene Island 335 field to a new fault block and demonstrates the potential for further exploration in the area.
  • All three wells drilled in the area have encountered a total of six pay sands, with fault separations forming eight potentially productive reservoirs.
  • Callon Petroleum Company holds a 20% working interest in Eugene Island Block 335, with the balance held by Murphy Exploration & Production Company (60%) and Santos USA Corp. (20%).
  • The three wells drilled in the area have demonstrated the presence of multiple pay sands with fault separations, indicating a complex geological structure that may be conducive to further oil discoveries.

Statistics:

  • 7,540 feet: The measured depth of the Eugene Island Block 335 No. A-3 well.
  • 6,000 feet: The true vertical depth of the Eugene Island Block 335 No. A-3 well.
  • 170 feet: The net oil and gas pay encountered in four intervals by the Eugene Island Block 335 No. A-3 well.
  • 4: The number of intervals of net oil and gas pay encountered by the Eugene Island Block 335 No. A-3 well.
  • 300 feet: The net oil and gas pay encountered by the Eugene Island 335 No.1 well, which discovered the field in October.

Sources:

  • Business Wire, Jan. 7, 1998
  • Callon Petroleum Company press release.