"In contrast to the successes of 2006, deepwater exploration in the U.S. Gulf of Mexico during 2007 was relatively disappointing," Wood Mackenzie said in a report.
HOUSTON (Reuters) - Last year saw the least oil and gas reserves discovered in the deep U.S. Gulf of Mexico in a decade, the Wood Mackenzie consulting firm said Wednesday.
"In contrast to the successes of 2006, deepwater exploration in the U.S. Gulf of Mexico during 2007 was relatively disappointing," Wood Mackenzie said in a report.
The study defines deep water as anything deeper than 400 meters (1,312 feet), authors Hugh Hopewell and Julie Wilson said.
The report said reserves found in the deep U.S. Gulf last year totaled 553 million barrels of oil equivalent (BOE), less than half the reserves found in an unusually strong 2006 and the least in 10 years.
!ADVERTISEMENT!"The lower level of exploration activity during 2007 is in part due to higher levels of appraisal and development drilling activity coupled with the tight rig market," the report said.
Thirty-four exploration wells were drilled in the deep U.S. Gulf in 2007, down from the annual average of 43, but in line with 2005 and 2006 performance, Wood MacKenzie said.
Forty-one percent of wells were successful, down from the average of 44 percent, the report said.
Of deepwater reserves found in 2007, 229 million BOE have been deemed commercial, or 41 percent of the total, down from the long-term average of 43 percent, Wood Mackenzie said.
Average drilling time was 71 days, substantially below the 108-day average in 2006 but in line with the long-term average. Wells in 2006 targeted deeper plays, the report said.
(Reporting by Bruce Nichols; Editing by Christian Wiessner)
