Wedoany.com Report-Jul. 29, Beacon Offshore Energy, a Texas-based exploration and production company, has commenced oil and natural gas production at its Shenandoah deepwater project in the Gulf of America. The floating production system (FPS) for the project, designed and built by Hyundai Heavy Industries in South Korea, arrived in February 2025 and was installed at Walker Ridge 52, approximately 150 miles off Louisiana’s coast in 5,800 feet of water.

Production began on July 25, 2025, from the first of four Phase 1 wells, with plans to increase output during the third quarter, targeting a capacity of 100,000 barrels of oil per day (bopd). Phase 2 includes two additional wells and a subsea booster pump, with the fifth well expected to be completed by mid-2026. The Shenandoah FPS, with a capacity of 120,000 bopd and 140 million cubic feet per day, serves as a regional hub to support additional developments, including the Beacon-operated Monument and Shenandoah South discoveries.

Located at a reservoir depth of about 30,000 feet, the project employs advanced 20,000 psi technology to access reserves, enabling development of similar fields in the Inboard Wilcox trend. The Shenandoah project, along with Monument and Shenandoah South, is estimated to hold nearly 600 million barrels of oil equivalent in recoverable resources.

Beacon’s Chairman and CEO, Scott Gutterman, 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.”

Beacon has also approved the development of Shenandoah South in Walker Ridge 95, located in water depths of 5,800 to 6,000 feet. This cost-efficient subsea tie-back project, connected to the Shenandoah FPS via a three-mile flowline and dedicated riser, includes two wells, with initial production expected in the second quarter of 2028. The project holds an estimated 74 million barrels of oil equivalent in proven and probable reserves.

Partnered with Houston Energy, HEQ Deepwater, and Navitas Petroleum, Beacon holds working interests in 87 deepwater leases covering nearly 500,000 gross acres, reinforcing its commitment to advancing sustainable energy production in the region.