Beacon Offshore Energy has started oil and natural gas production from the Shenandoah field, offshore Louisiana, US.
The first of four wells began production on 25 July, with plans to increase phase one output during the third quarter (Q3) to an expected 100,000 barrels of oil per day (bopd).
The Shenandoah development is being carried out in phases, with phase one consisting of the initial four wells.
Phase two includes the addition of two more wells and a subsea booster pump. The fifth producer well is scheduled to be drilled and completed by mid-2026.
The Shenandoah floating production system (FPS) in the Gulf of Mexico (GOM), with a nameplate capacity of 120,000bopd and 140 million cubic feet per day, is now operational.
Situated on Walker Ridge 52, around 150 miles offshore Louisiana in 5,800ft of water, the FPS is designed to act as a regional host facility.
It is expected to facilitate the development of additional resources including the Beacon-operated Monument and Shenandoah South discoveries. Combined, these resources are estimated to contain nearly 600 million barrels of oil equivalent (mboe).
Located at reservoir depths of approximately 30,000ft true vertical depth, the Shenandoah reserves are being developed using high-pressure 20,000psi technology.
This approach is expected to aid in the development of other fields within the Inboard Wilcox trend.
Furthermore, Beacon has sanctioned the development of the Shenandoah South discovery, located in Walker Ridge 95 in water depths of 5,800–6,000ft.
This field is in close proximity to the Shenandoah FPS, allowing for a cost-effective subsea tieback development through a three-mile flowline and a dedicated riser connection.
The development plan for Shenandoah South includes drilling and completion of two wells, with the first expected to begin production in Q2 2028.
Beacon estimates that Shenandoah South holds 74mboe of proven and probable resources.
In this venture, Beacon is collaborating with Houston Energy, HEQ Deepwater and Navitas Petroleum.
Beacon chairman and CEO Scott Gutterman said: “The Shenandoah first production milestone demonstrates Beacon’s ability to safely deliver industry-leading developments in a cost-effective fashion.
“I would like to personally congratulate and thank our employees, contractors and vendors for their tenacity, dedication and technical expertise in delivering this important project. We further appreciate the shared vision and support from our partners Navitas and HEQ, as well as our capital providers.”
Earlier in the month, Danos Operations Services secured a contract to provide production services at Beacon Offshore Energy’s new deep-water facility, the Shenandoah FPS.
