Page 11 - NorthAmOil Week 26 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

LLOG announces first output from Spruance

GULF OF MEXICO PRIVATELY owned LLOG Exploration this Beacon Asset Holdings (11.61%), Houston Energy
week announced that production has begun (11.2%), Red Willow (11.15%) and CL&F (6%).
from its operated Spruance field, located in The partners discovered the field in mid-
Blocks 877 and 921 of Ewing Bank in the deep- 2019 via the EW 877 #1 subsalt exploratory
water Gulf of Mexico (GoM). well, which was drilled to a total depth of 17,000
The Louisiana-based company said that feet (5,182 metres), hitting around 150 feet (46
Spruance is producing through two wells, at a metres) of net pay in the Miocene.
combined rate of around 16,000 barrels per day This was expanded to more than 200 feet (61
(bpd) of oil and 13mn cubic feet (368,000 cubic metres) after the drilling of the EW 921 #1 well,
metres) per day of gas. which also delineated the main field pays.
Output is transported via a 14-mile (22.5- Commenting on the start of production,
km) subsea pipeline to EnVen’s Lobster platform LLOG president and CEO Philip LeJeune, noted
in the EW 873 concession, where it is handled that Spruance “leverages existing infrastructure
following the signing of a production-han- and LLOG’s operational capabilities to bring on
dling agreement (PHA) in July 2020. Lobster is meaningful production safely”.
located around 130 miles (209 km) south of New He added: “By remaining active through-
Orleans at a water depth of 775 feet (236 metres). out commodity price cycles and continuing to
“First production was achieved less than three deliver world-class results, we are seeing sig-
years after the initial exploratory discovery well nificant production growth in a higher pricing
was drilled,” it said. environment. We are executing our strategy of
LLOG holds an operated working inter- developing deepwater GoM projects in areas that
est of 22.64% in Spruance and is partnered by have been prolific in the past and that we under-
Ridgewood Energy (23.89%), EnVen (13.5%), stand very well.”™

NEWS IN BRIEF

POLICY and gas sector, industry is well positioned to UPSTREAM
act decisively on closure liability in Alberta
Alberta Energy Regulator while providing a performance model that can Imperial committed to long-
be held up as an inspirational example,” added
increases industry-wide Mr. Pushor. term shareholder value
Industry-wide spend targets support
closure spend target for attending to inactive pipeline, facility, and Imperial Oil announced today that it has
well inventory reduction and are a part of the
received final acceptance from the Toronto
liabilities by CAD278mn to overall Liability Management Framework Stock Exchange (TSX) for a normal course
set by the Government of Alberta, which the
issuer bid (NCIB) to repurchase up to 5%
$700mn AER uses to guide its work. Closure spend of its 636,676,182 outstanding common
shares as of June 15, 2022, or a maximum of
targets increase the amount of closure work
The Alberta Energy Regulator (AER) has that is occurring in the province as licensees 31,833,809 shares during the next 12 months.
increased the industry-wide closure spend are required to spend a minimum amount on This maximum will be reduced by the number
target for liabilities in 2023 from CAD422mn closure annually. of shares purchased from Exxon Mobil,
to CAD700mn and released forecasted “As Alberta’s economic recovery continues, Imperial’s majority shareholder, as described
targets through 2027, which are anticipated to we are building on our promise to take below.
increase annually by 9%. bold and strong action under the Liability The new one year programme will begin
“These increases ensure closure activity is Management Framework,” said Sonya Savage, on June 29, 2022, and will end should the
prioritised by companies developing energy Minister of Energy, Government of Alberta. company purchase the maximum allowable
in Alberta,” said Laurie Pushor, president, “The increased mandatory closure spend number of shares, or on June 28, 2023.
and CEO of the AER. “We are taking action target upholds our robust regulatory standards Imperial has established an automatic
to stop the growth of closure liability in the by shrinking the inventory of inactive sites share purchase plan with its designated broker
next five years. With these new requirements, across the province and accelerating the to facilitate the purchase of common shares,
companies will be accountable to decrease timely restoration of land.” both under the NCIB and concurrently from
inactive well sites across Alberta.” In 2021, industry decommissioned 11,801 ExxonMobil, during times when Imperial
The AER reviewed recent closure spending, wells, 7,713 pipeline segments, and 570 would ordinarily not be permitted to purchase
commodity pricing, and market conditions in facilities while 2,159 sites received reclamation due to regulatory restrictions or self-imposed
determining the 2023 target. certificates by the AER. black-out periods. Before entering a black-out
“Given the pronounced improvement in ALBERTA ENERGY REGULATOR, June 28, 2022 period, Imperial may, but is not required to,
revenue and the continued recovery of the oil instruct the broker to make purchases under

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