Given that Imperial Petroleum has one of the more forward-looking portfolios of any developing energy company, with interests in biodiesel as well as tar sands recovery technologies, it’s easy to overlook the company’s substantial stake in traditional oil and gas production.
A major part of this effort is their interest in Coquille Bay Field, located in Plaquemines Parish, on the southeast tip of Louisiana. The field had been inactive for several years, and a new operating agreement was negotiated with the State of Louisiana by the previous operator, Royal-T Oil Co, Inc. Imperial assumed operations in January 2005 and successfully completed the major platform renovation work, beginning limited gas sales and oil production from the field in the summer of 2005.
The field has multiple pay sands from 6,000 feet to 11,000 feet, and a total of 17 completions are tied to a production platform on the east side of the Mississippi River near Buras, Louisiana. Imperial owns a 22% working interest plus a 21.04% net revenue interest in the field. However, due to non-consent elections by several of its partners, the company participates for a 49.5% working interest and a 42.15% net revenue interest, subject to a 500% non-consent payout provision on the balance of the interest. The Louisiana Resource Development Corporation (LRDC) is carried for 6.45% working interest and 4.515% net revenue interest by Imperial until a volume payout of 204,000 barrels of oil equivalent are produced. Currently the field produces from 3 wells at approximately 65-70 bopd and 30 mcfpd due to limited saltwater disposal capacity.
Custody transfer of the natural gas to the purchaser, Mideast Gas, occurs at the Imperial platform where the gas is metered. Oil production is stored at the platform and sold via barge loading facilities to Plains. A pipeline outlet and lact unit are available at the platform for oil sales into Chevron’s pipeline, although the previous operator had not negotiated a sales contract at the time Imperial assumed operations.
Seismic data across the company’s acreage suggests the potential for deeper prospective pay zones. For additional information, visit the company’s website at www.ImperialPetroleumInc.com
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