Due to the expanded use of AI in Data Centers there is a growing demand for electricity. In the US, the largest source of electricity (with 43%) is natural gas. With more than 5,380 Data Centers in the country, the gas needed to supply the 139-Terawatt hours (TWh) of electricity for 15 years is around 1 trillion cubic feet of natural gas. At New Horizon Oil and Gas, we have compiled a Conventional, Gulf Coast Portfolio of Opportunities in South Louisiana. We call this the Fleur de Lis Portfolio. These reserves are ideally located next to existing pipelines with extra capacity and gas power plants. My partner, Jarrod McGehee, has drilled more than 55 wells in this area, with a lifetime success rate above 70%. Hydrocarbons are predominantly gas with high condensate yield. The opportunities are in a historically prolific play, tapping Upper and Middle Miocene deltaic and slope turbidites of the ancestral Mississippi Delta. Most fields in the area have been discovered in the 1950s and 1960s and have been developed till the early 2000s. The Major Oil Companies and Large Independents that discovered them went to the offshore, then deepwater Gulf of Mexico, followed by the unconventional plays starting in the early 2000s. The 3D seismic surveys were acquired from 1996 to 2000 and have been reprocessed for consistent Amplitude vs Offset (AVO) analysis. Interpreting this data, we specialize in finding areas of fields that have not been developed because the seismic did not exist during the main period of development. New Horizon focuses on calibrated, AVO supported, structural traps that have Direct Hydrocarbon Indicators (DHIs). Some of these 3Ds are proprietary and are not available to other companies. There are excellent analogs near each prospect. This is at the core of what we do: we explore starting by studying on seismic and wells where the previous production was. We have more than 25 self-generated prospects, totaling risked recoverable reserves of 1.097 Trillin Cubic Feet (TCF) of gas and 79.4 million Barrels of Condensate (MMBC). The top ten prospects total 887 BCF of gas and 67.8 MMBC have an average Chance of Success of 77%. Drilling cost to prove these ten prospects is estimated at $204 million. The investor share of developing this portfolio's CAPEX totals $464 million, deployed during the first three years. It usually takes 18 months from project kickoff to first production. The economics of the top ten prospects using flat prices of $75/bbl and $2.5/mcf shows that the risked NPV10 of this portfolio is estimated at $1.435 billion (before income tax). Louisiana State acreage has the best royalties since the 1950’s: 18.5% for first 36 months of production. The average Rate of Investment (ROI) is estimated at 5.4, the average Rate of Return is 164.8%. We estimate that average positive cash flow is reached in year 3. Average Break-Even Costs for these opportunities are $19.3/bbl and $1.4/mcf. Please let us know if you are interested in knowing more about this opportunity. We are looking for an equity investor that will participate with a $150 million initial investment.
83% total success rate in wells with AVO on structural traps, 70% success rate on AVOs in stratigraphic traps.
Connect42 successful wells drilled, 80% commercial success rate.
Lower and Middle Miocene sands (700' - 22,000')
