South Arne Appraisal Well Completed

Amerada Hess has completed the appraisal well Katherine -1 (5604/30-4) on the South Arne Field in the North Sea. The well was drilled by DONG E&P using the jack-up rig ENSCO 71. The well was spudded on the September 24, 2003 in approximately 59 meters of water.

Katherine-1 was drilled as a near vertical well on the Crest of the field. Subsequently the well was side-tracked and a near vertical well Katherine-1A was drilled on the East flank of the field. The East flank was further appraised with a near horizontal well Katherine-1B. All three wellbores achieved their objectives and confirmed the presence of hydrocarbons on the Crest and East flank of the South Arne field. The new information gathered from the Katherine wellbores will be used in the planning of development wells to be drilled on the South Arne field.

The well has now been plugged and abandoned. The ENSCO 71 rig will be moved to a position Northeast of the Siri platform in the Danish-Norwegian basin to drill a production well to Stine Segment 1.

The 7/89 license group consists of Amerada Hess ApS as operator with 57.47875%; DONG with 34.37500%; Denerco Oil with 6.5625% and Danoil Exploration with 1.58375%.

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