LLOG Exploration Provides Operational Update

Wall Street Business News

Announces Successful Deepwater Exploratory Discovery in Mississippi Canyon 387, Five New Fields Online in 2018 and Three New Fields Expected Online in 2019

COVINGTON, La., Jan. 14, 2019 (GLOBE NEWSWIRE) — LLOG Exploration Company, L.L.C. (“LLOG” or “the Company”), a privately-owned exploration and production company focused on the deepwater Gulf of Mexico (“GOM”), today provided a detailed update on the status of its recent successes and ongoing projects. Key highlights include:

  • Drilled successful discovery on LLOG’s exploratory prospect, Nearly Headless Nick, in Mississippi Canyon 387
  • Brought online five new fields in 2018, of which four initiated production in the fourth quarter, adding a total of eight new producing wells in 2018
  • The five LLOG-operated fields represents over half of the nine total fields brought online in the entire Deepwater GOM
  • Forecasting three new fields being brought online in 2019 from five wells
  • Four additional development wells from existing fields also expected to be brought online in 2019
  • Progressing 10 development projects as a result of prior exploratory successes

Philip LeJeune, President and CEO of LLOG, commented, “We continue to build on the many accomplishments that we have achieved at LLOG in the deepwater GOM. We had a number of significant achievements in 2018, including bringing on eight new wells, continued exploration successes and being named operator in new projects. At our Delta House FPS, our continued discoveries and new well productivity has exceeded our expectations, resulting in our Delta House platform currently operating at maximum capacity. In 2018, there were nine new fields brought online across the GOM, and we are proud that LLOG was the operator of five of those fields. All of these accomplishments are evidence of our ability to continue to execute on our strategy of generating deepwater prospects in areas of proven success near existing infrastructure that can be drilled, developed and placed on production efficiently and economically.

Mississippi Canyon 387: Nearly Headless Nick Discovery

The Nearly Headless Nick discovery was drilled by LLOG using the Rowan Resolute mobile offshore drilling unit. The well was drilled to target Upper Middle Miocene sands in water depths of over 6,500 feet and 150 miles southeast of New Orleans. The well encountered oil pay in high quality Miocene sandstone reservoirs and is expected to be tied back to the nearby LLOG-operated Delta House facility in Mississippi Canyon 254. LLOG’s partners in the discovery include BP, Centaurus, Kosmos and Ridgewood(1).

LLOG Operated Discoveries Brought Online in 2018

LLOG has five previously-announced GOM deepwater discoveries (eight wells) that were placed on production in 2018. The LaFemme prospect in Mississippi Canyon 427 was discovered in mid-2016 and was successfully appraised by a follow up well in late 2016. The Blue Wing Olive prospect in Mississippi Canyon 427-471 was drilled in late 2016 with a discovery well encountering two oil and natural gas reservoirs in the Miocene. The Red Zinger prospect in Mississippi Canyon 257 was drilled in 2016 and found multiple Miocene targets. LaFemme, Blue Wing Olive and Red Zinger wells were tied back to the LLOG-operated Delta House facility. The Claiborne prospect in Mississippi Canyon 794 had a discovery well drilled in 2015 and was successfully appraised with a second well in late 2016. Both wells were tied back to the Walter-operated Coelacanth platform in Ewing Bank 834. The Crown & Anchor discovery in Viosca Knoll 959, 960, 1003 and 1004 was drilled by LLOG as operator in 2015 and had a second well drilled in 2016; both wells targeted multiple Miocene sands. The wells were tied back to the Anadarko-operated Marlin facility in Viosca Knoll 915, and both came online in early June. LLOG’s partners in LaFemme and Blue Wing Olive are Beacon Offshore Energy Operating, LLC, Red Willow Offshore, LLC, Ridgewood Energy(1) and Houston Energy. LLOG’s partners in Red Zinger are Beacon Offshore Energy Operating, LLC, Red Willow Offshore, LLC and Ridgewood Energy(1). LLOG’s partners in Claiborne are Ridgewood Energy(1), Red Willow Offshore, LLC, CL&F Offshore LLC and Beacon Offshore Energy Operating, LLC. LLOG’s partners in Crown & Anchor are Beacon Offshore Energy Operating LLC and Ridgewood Energy(1)

LLOG Operated Discoveries Expected to be Brought Online in 2019

There are nine wells expected to be brought online in 2019, which include four development wells at Who Dat, Mandy and Red Zinger. In addition, five wells from three new fields, Stonefly, Buckskin and Nearly Headless Nick, are forecasted to be brought online in 2019. LLOG continues to progress 10 other developments and has an extensive pipeline of follow up development drilling to prior exploratory successes.

About LLOG

LLOG Exploration Company L.L.C. is one of the largest privately-owned exploration and production companies in the United States. LLOG’s corporate headquarters is in Covington, Louisiana and the Company has an office in Houston, Texas. For additional information, visit the Company’s website at www.llog.com.

(1) Ridgewood Energy consists of entities managed by Ridgewood Energy Corporation (which includes Riverstone designated affiliates)

(2) Houston Energy consists of entities managed by Houston Energy L.P.

Contact: Rick Fowler  (rickf@llog.com)  985-801-4300

Wall St Business News, Latest and Up-to-date Business Stories from Newsmakers of Tomorrow