1947 Oil & Gas (AIM:1947) told investors it has restored production at its Eugene Island 331 field in late September, following an extended shut-in caused by repairs to a downstream condensate gathering facility.
The AIM-listed oil and gas production company, which is aggregating and redeveloping mature assets across the US Gulf Coast and Gulf of America, brought the field back online at a rate of 1,200 barrels of oil equivalent per day (boepd) gross and approximately 1,000 boepd net, 81% oil weighted.
The update also covers the Ship Shoal 198 field, where a workover campaign completed ahead of the Renaissance Offshore transaction closing at the end of September has lifted output to 1,275 boepd gross and 1,060 boepd net, up from an average of 545 boepd net in the first half of the year.
Separately, 1947 has been awarded two offshore lease blocks, West Delta 133 and South Timbalier 314 in the Gulf of America, by the Marine Minerals Administration as part of the Big Beautiful Gulf 3 Lease Sale held on 12 August.
The award is the third offshore lease sale in the Gulf of America required under the One Big Beautiful Bill Act, which was established to advance redevelopment of US offshore energy resources.
The two blocks add 10,000 gross acres to 1947's portfolio and were previously held within the Renaissance Offshore portfolio, but now carry a reduced 12.5% royalty rate, which the company said improves the economics of redevelopment at the sites; the combined bid for both blocks totalled approximately $260,000.
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"We are excited to have Eugene Island 331 back on-line and the increase in production at the Ship Shoal 198 field, both in-line with our expectations," said Tim Duncan, Executive Chairman of 1947, adding that the company is "high-grading organic opportunities internally while continuing to look at market opportunities externally" as it positions itself as a consolidator in the basin.