Kerr-McGee Oil & Gas Corp. will acquire a 70% working interest in eight leases totaling approximately 12,000 acres off the Alaska coast, northwest of Prudhoe Bay, from Armstrong Alaska, Inc. Kerr-McGee will operate the leases and expects to spud at least one exploratory well during the first quarter. Armstrong holds the remaining 30% interest. The agreement includes the right to acquire interest in 13 additional leases in the area, totaling 54,000 acres.
In addition, Kerr-McGee do Brasil Ltda. will acquire 33 1/3% working interest in the BM-C-7 block in the Campos basin from EnCanBrasil Ltda. subject to government approvals. In 2004, Kerr-McGee expects to participate in one exploratory well on this 161,000-acre block in approximately 400 feet of water. EnCanBrasil operates the block with 66 2/3% interest.
"We continue to strategically enhance our prospect portfolio with acreage in world-class petroleum provinces such as the North Slope and Campos basins," said Dave Hager, Kerr-McGee senior vice president responsible for oil and gas exploration and production. "These new leaseholds offer large reserve potential in proven hydrocarbon basins, balancing our global deepwater opportunities."
With the addition of this acreage, Kerr-McGee holds interests in more than 68 million undeveloped acres worldwide, with more than 80% in deepwater trends.
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