American Oil and Gas Reporter - April 2019 - 93

SpecialReport: Gulf of Mexico Update
production to give us additional revenues, which also gives
us access to higher volumes and higher reserves in that
basin," he says.
Whether in shallow or deep water, the Gulf of Mexico has
plenty of upside, Williford assesses, with per-well output
second to none in the United States. "A lot of people forget
that the Gulf is the second highest oil producing basin, and
has some of the highest-rate producing wells," he says. "The
Gulf is not on the decline, it is on the incline. We see a lot of
upside and potential."
Whether working mature assets or green-field projects, the
company has built the technical expertise to successfully develop
and operate fields in all water depths, as evidenced by its high
drilling success rate across all water depths, says Chief Financial
Officer Janet Yang.
"We have managed through every type of headwind in the
Gulf of Mexico for 35 years and our success rate is 93 percent
on 40-plus wells drilled since 2011," Yang states.
Wealth Of Opportunities
Beacon Offshore Energy LLC was formed by Blackstone
Energy Partners, an affiliate of Blackstone, in 2016 as an exploration and production company focused on exploring, developing,
acquiring and operating upstream oil and gas properties in the
deepwater Gulf of Mexico. Beacon currently holds interests in
approximately 60 deepwater leases, and is transitioning to becoming a deepwater operator in 2019, says Chairman and CEO

Scott Gutterman.
"The deepwater Gulf is still one of the most prolific basins
in the world, providing a wealth of attractive exploration opportunities in addition to the potential for consolidation," says Gutterman, who joined Beacon in November after 25 years at
LLOG Exploration. "There are fewer companies active in the
deep water today with less competition for these opportunities.
Our objective is to build a high-quality asset portfolio and
position the company as a leading deepwater operator and
partner of choice."
According to the company, it currently holds working
interests in both producing assets and exploration positions in
several deepwater plays from Mississippi Canyon to Keathley
Canyon, with a focus on the Miocene and Eocene trends.
Beacon's current working interest positions range from approximately 10 to 50 percent. At March's Lease Sale 252, the
company was apparent high bidder on seven blocks in Green
Canyon and Walker Ridge, with working interests ranging from
50 to 85 percent.
"We are looking to step up our pace of growth," Gutterman
remarks, noting that Beacon plans to drill two-three wells
during the next several months, but hopes to increase that
number later in the year as it assumes the role of operator of
new ventures.
The company's total lease position includes 213,000 gross
and 53,000 net acres, and Gutterman notes that, later this year,
it will assume operatorship of six producing properties that

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American Oil and Gas Reporter - April 2019

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