Arena Energy Mobilizes Refurbished Rig for GOM Operations

Arena Energy LLC and White Fleet Drilling LLC have mobilized a refurbished WFD 400 jack-up drilling rig in the Gulf of Mexico (GOM).

The WFD 400 will support drilling and development activities for Arena as well as plugging and abandonment operations for third-party operators in the GOM for the next 15 to 20 years, Arena said in a news release Thursday. The rig is currently under contract and on location performing plugging and abandonment work for a third-party operator in the shallow waters of the GOM, according to the release.

White Fleet acquired the out-of-service rig in 2022 and subsequently moved the rig to Gulf Copper’s shipyard in Galveston, Texas in July. Enterprise Offshore Drilling provided project management services for an extensive refurbishment of the rig to bring it to operational standards, including the installation of state-of-the-art equipment, improved safety features, and a complete overhaul of the rig’s mechanical systems, Arena said. The upgrades will allow the rig to operate more efficiently, reducing downtime and improving overall safety, it said.

“This is important not only for Arena and White Fleet, but also for the rest of the industry”, Arena Co-Founder and CEO Mike Minarovic said. “Just 10 years ago, there were thirty-six active jack-up drilling rigs in the U.S. Gulf of Mexico. With the addition of the WFD 400, there are now six active jack-up rigs in the Gulf, and the WFD 400 fills a void for jack-up rigs capable of working in four hundred feet of water. Partnering with White Fleet to invest significant capital in refurbishing the WFD 400 rig is further testament to Arena and White Fleet’s long-term commitment to safe and sustainable operations on the Gulf of Mexico Shelf, and the rig represents hundreds of good-paying jobs for workers in rural communities all along the Gulf Coast”.

“The acquisition and refurbishment of the WFD 400 rig is a significant accomplishment for White Fleet Drilling and our partners. This rig increases the availability of jack-up rigs in the Gulf and will provide our customers with the flexibility and capacity they need”, White Fleet CEO Kalil Ackal said.

According to the release, White Fleet was formed in 2017 as a jack-up rig services provider for safer, more efficient, and consistent drilling services to Arena and the offshore industry in the GOM. White Fleet Drilling owns and operates three jack-up drilling rigs capable of drilling in water depths of 12 to 400 feet, and the White Fleet team has drilled over 750 wells in the GOM over the past 20 years with a track record of excellence in safety and environmental performance, the release said.

In January, Arena closed the acquisition of Cox Operating LLC’s interest in two fields located in the shallow waters of the GOM, according to an earlier news release.

The acquisition consolidates Arena’s ownership interest in Eugene Island 330 and South Marsh 128, both of which were recently acquired from GOM Shelf LLC. The acquired interests account for approximately 1,000 net daily barrels of oil equivalent, Arena said.

“This is yet another important milestone in Arena’s strategy to maximize the opportunities in the shallow waters of the Gulf of Mexico”, Minarovic said. “This transaction builds on our recent acquisitions from GOM Shelf, LLC. We are confident that the Arena team will unlock significant value as we leverage proprietary seismic data to better understand these reservoirs to identify future drill wells, and ultimately increase production”.

“This transaction—coupled with the recent acquisitions from GOM Shelf, LLC, as well as the leases awarded pursuant to Lease Sale 257—provides many years of additional inventory to allow Arena to continue producing some of the cleanest barrels for the U.S. and the world”, Minarovic added.

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