We have a shallow water Gulf of Mexico position in the Eugene Island 10 Field situated in thirteen feet of water. The Eugene Island 10 Field contains a depletion drive reservoir that provides predictable production / cash flow which can be supported by an active hedging program. From our production platform, we are able to access two separate oil and natural gas markets thereby minimizing downtime risk and providing the ability to select the best sales prices for our oil and natural gas production. Oil and natural gas production can flow through our 20” gas pipeline to third-party owned and operated onshore processing facilities near Patterson, Louisiana. Alternatively, natural gas can flow via our 8” pipeline to a third-party owned and operated onshore processing facility southwest of Abbeville, Louisiana and oil can flow via a 6” oil pipeline to third-party owned and operated onshore processing facilities in St. Mary Parish, Louisiana. Production facilities include a turbine type compressor capable of servicing all Dutch and Mary Rose wells at the Eugene Island 11 platform. Condensate can also flow to onshore markets and multiple refineries through significant upside opportunity via high impact exploratory prospects.
Additionally, we entered into a joint development agreement with Juneau Oil & Gas, LLC (“Juneau”) in December 2019, which provides the Company the right to acquire an interest in up to six of Juneau’s exploratory prospects located in the Gulf of Mexico, for approximately $1.7 million in cash and 1.725 million common shares. Juneau, a prospect generator, originally discovered the Eugene Island 10 Field for Contango.
