Rocksource Gulf of Mexico (RGOM)

The strategic rationale behind the GoM entry in 2009 was to accelerate the company’s drill queue of EM positive prospects and create opportunities for short to medium term production growth and value creation. The GoM is one of the world’s most prolific exploration basins with attractive fiscal terms.

The Macondo incident, which occurred six months after Rocksource entered the GoM, has slowed the GoM activities. While the incident is now over and the drilling moratorium has now been lifted,  uncertainty remains regarding operational practices and liability. These need to be resolved before Rocksource can participate in GoM drilling. The company is currently addressing this issues.

Entry to the GoM was a two stage process. The initial stage was a farm-in deal with Focus Exploration LLC which gave Rocksource access to a portfolio of seven leases with existing EM data and several EM positive prospects.

In September 2009, Rocksource strengthened its position in the GoM, following successful awards in the Western Gulf of Mexico Lease Sale 210. Rocksource Gulf of Mexico (RGOM), a wholly owned subsidiary of Rocksource ASA, was awarded 13 leases situated in the western part of the GoM. The leases awarded contain both previously discovered oil (the Trident field) and significant exploration potential. Acquisition of eight EM lines over four prospects was performed during the winter 2009-2010. Evaluation of the prospects is ongoing.

Autumn 2010 Rocksource and partners relinquished three leases after evaluation of resource potential. Rocksource have also increased the equity in some of the leases with oil potential.

Rocksource estimates that its current GoM portfolio of 17 leases includes an exploration potential of approximately 200 million barrels of oil equivalents (mmboe) net risked resources. There are also three leases with discoveries. The largest is the Trident discovery, which the previous operator (Unocal/Chevron) estimated to contain in excess of 100 million barrels of discovered resources. The other two are in the 10-20 mmbo range.

Located on Alaminos Canyon, Trident was discovered in July 2001 by Unocal. Three wells were drilled on the acreage, all of which encountered hydrocarbons, but the project was never sanctioned for development. Unocal merged with Chevron in 2005, and in 2008 the operator Chevron returned the leases at the expiry of the primary lease term.

For a fact sheet on Trident, please click here.

The GoM leases have a ten year lease period, except for two shallow with a 5+3 year period, with no work programme commitments attached.

Last updated: November 2010