General News | Drilling Activity

Gulf Slope Picks Up Two More GOM Blocks; Begins Drilling at Tau Prospect

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   |    Thursday,December 27,2018

GulfSlope Energy Inc. reported several updates, including the awarding of two new blocks as well as a drilling update.

New Blocks Awarded

The Company has also received notice of award of two offshore lease blocks for which it was the high bidder at the region-wide Gulf of Mexico Lease Sale 251 conducted by BOEM.

The Blocks awarded and the corresponding bonus amounts that have been paid are:

Both leases have a five-year primary term and carry a 12.5% royalty to BOEM.  The EI 371 Block represents a new prospect and has been named “Freedom”.  This Prospect will target subsalt Miocene oil reservoir pay sand objectives and has a trapping style related to salt flanks similar to the existing subsalt prospects in the GulfSlope drilling portfolio.

Drilling Ops Begin at Tau Prospect

Drilling operations on the Tau subsalt prospect commenced September 13, 2018.  The wellbore is designed to test multiple Miocene horizons trapped against a well-defined salt flank, including equivalent reservoir sands discovered and developed at the nearby Mahogany Field.  The surface location for Tau is located in 305 feet of water.  During drilling operations, the well encountered difficulties associated with shallow faults requiring two additional casing strings prior to setting 13-5/8 inch casing above salt.  Drilling is now proceeding in the main salt section and the prospective section below salt is expected to be encountered in January.

GulfSlope is the operator of the Tau well with a 20 percent working interest.  Delek GOM Investments LLC, a subsidiary of Delek Group Ltd. owns a 75 percent working interest and Texas South Energy Inc. owns a five percent working interest.