Beacon Offshore Energy LLC, Houston, announced Friday that it has begun production from its deepwater Shenandoah field in the Gulf of Mexico. Production from the first of four Phase 1 wells began on July 25, with plans to ramp up throughout the third quarter to a target capacity of 100,000 barrels of oil per day (bpd).
The Shenandoah development is located in Walker Ridge Block 52 roughly 150 miles off the Louisiana coast. The field lies in approximately 5,800' of water, with reservoirs situated at depths of about 30,000' true vertical depth.
Beacon is utilizing cutting-edge 20,000-psi high-pressure technology to access the reserves, a move the company says could pave the way for additional developments in the Inboard Wilcox trend.
The project is being produced through a newly commissioned floating production system, which has a nameplate capacity of 120,000 bpd and 140 million cubic feet of natural gas per day (mmcfd). The floater is designed not only to support Shenandoah, but also future tie-ins from nearby fields, including the Monument and Shenandoah South discoveries. Combined, the three fields are estimated to hold nearly 600 million barrels of oil equivalent (MMBOE) in recoverable resources.
In tandem with the production start, Beacon also announced the final investment decision for the Shenandoah South development, located in Walker Ridge Block 95. Shenandoah South will be connected to the main FPS via a three-mile subsea flowline and riser. Development will include the drilling of two wells, with the first expected to come online in the second quarter of 2028. Estimated 2P (proven and probable) reserves for Shenandoah South stand at 74 MMBOE.
Beacon is partnering with Houston Energy, HEQ Deepwater, and Navitas Petroleum on the Shenandoah South project.
“The Shenandoah first production milestone demonstrates Beacon’s ability to safely deliver industry-leading developments in a cost-effective fashion," Scott Gutterman, Beacon’s chairman and CEO said in a statement. "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.”
Phase 2 of the Shenandoah development will include two additional wells and a subsea booster pump, with a fifth production well expected to be drilled and completed by mid-2026.
