Beacon Offshore Energy has commenced oil and natural gas production from the Shenandoah field.  Production from the first of four producing wells commenced on July 25 and Beacon expects to ramp up the Phase 1 wells during the third quarter with a target aggregate deliverability of 100,000 bopd.  Phase 2 of the Shenandoah development includes two additional wells and a subsea booster pump with the fifth Shenandoah producer expected to be drilled and completed by mid-2026. The Shenandoah reserves, located at reservoir depths of approximately 30,000 feet true vertical depth, are being developed utilizing industry leading high pressure 20,000 psi technology which Beacon expects to facilitate development of other similarly situated fields in the Inboard Wilcox trend.

The Shenandoah floating production system (“Shenandoah FPS”) located on Walker Ridge 52 approximately 150 miles off the coast of Louisiana in a water depth of approximately 5,800 feet has been placed into service with a nameplate capacity of 120,000 bopd and 140 mmcfd. The Shenandoah FPS has been designed as a regional host facility that will enable development of additional resources including the Beacon operated Monument and Shenandoah South discoveries which together with Shenandoah are expected to hold recoverable resources of nearly 600 MMBOE. 

Additionally, Beacon is pleased to announce the sanctioning of the development of the Shenandoah South discovery located in Walker Ridge 95 in water depths ranging from 5,800 to 6,000 feet (“Shenandoah South”). The field’s proximity to the Shenandoah FPS will enable a cost-efficient subsea tieback development to be accomplished via a three-mile flowline and dedicated riser connection to the Shenandoah FPS. Shenandoah South is expected to include the drilling & completion of two wells with initial production from the first well expected to occur in the second quarter of 2028. Beacon estimates a total of 74 MMBOE of 2P resources for Shenandoah South. Beacon is partnering with Houston Energy, HEQ Deepwater, and Navitas Petroleum in the Shenandoah South development.

Scott Gutterman, Beacon’s Chairman and Chief Executive Officer, stated: 
“The Shenandoah first production milestone demonstrates Beacon’s ability to safely deliver industry leading developments in a cost-effective fashion. I would like to personally congratulate and thank our employees, contractors, and vendors for their tenacity, dedication, and technical expertise in delivering this important project. We further appreciate the shared vision and support from our partners Navitas and HEQ, as well as our capital providers.”

KeyFacts Energy: US Gulf of America country profile