Gulf Coast Basin, USA
Dual conventional oil and gas and coal seam gas prospectivity in an established petroleum province.
The Zydeco Project is located in the highly prospective Gulf Coast Basin, an onshore Mesozoic-Cenozoic, marginal sag basin containing more than 15km of sedimentary fill. The Project has a total of 325.3 acres of mineral leases secured located in the Acadia Parish, Louisiana, USA.
The Project comprises the development of a discovered gas/condensate field and exploration of a deeper reservoir defined by 3D seismic. Appraisal targets to the east (Zydeco East) have also been identified comprising the same stacked reservoir sands is the Zydeco Project.
Drilling and development is low cost and low risk, targeting first production and cashflow by 2026/2027. Revenues from the project will support subsequent phases of drilling in the area including Zydeco East and the delivery of growth opportunities within the USA. The project provides Gulf Stream Energy the springboard to grow using cashflow and positions Gulf Stream Energy to start its path towards creating a mid-sized US exploration, development and production business.
Proximity to the Texas gas pipeline together with ease of access from highway and parish roads, facilities mobilisation of the drilling rig and installation of production facilities. The project will comprise gas and condensate separation facilities, dehydration, condensate storage, trucking facilities, and a gas spurline to a tie-in point at the Texas gas pipeline less then 1 mile from the Zydeco field.
Transformative project with high impact cashflow generation
The Zydeco Project has a low development cost and oil production could come on stream inside of 6 months.
Significant work has been undertaken to date, as the Zydeco Project is 3D covered with appraisal and near-field exploration wells drill-ready.
Short 1.6km gas spur line to the Texas Gas Pipeline, and a condensate stripping and truck loading facility. Readily accessible with existing sealed roads and gravel tracks.
The Zydeco Project, Louisiana, USA is a low-risk development and appraisal of a proven gas & condensate field.
Using relatively conservative assumptions, the Zydeco Project delivers significant positive attributes, including: Project NPV 10 of A$18.8m, payback of 12 months, EBITDA Yr1 at A$9.2m and NCF Yr1 at A$7.5m
Dual conventional oil and gas and coal seam gas prospectivity in an established petroleum province
Multiple play-levels are proven productive throughout the basin, particularly within the Cenozoic succession where stacked pay is common and reservoir quality is typically very good. The basin is extensively explored with extensive 3D seismic coverage.
Within the project 2 reservoirs are capable of being drilled with a single well and subsequently put on production:
The Upper Tweedle Fm. is proven productive at near offset fields Indigo Min (2km south) and Frey (8km east). The reservoir was previously drilled on the structure in 1950, by The MacCabees et al #1 well, which intersected gas in the Upper Tweedle Fm but never produced from that interval, instead completing, and producing from a shallower oil reservoir. The Zydeco-1 well will re-drill the Upper Tweedle Fm for production.
The Lower Tweedle Fm. is also proven productive at near offset fields). The reservoir lies below the MacCabees et al #1 well TD and therefore remains untested on the structure. Zydeco-1 will drill deeper to also test the HC potential of the Lower Tweedle Fm. reservoir.
