PXP owns a 100% working interest and approximate 83% revenue interest.
Drilling operations are presently underway on PXP's second Inglewood Deep test well which will evaluate a different geological concept in another portion of the Inglewood Field. During 2004, PXP will drill several concepts and structures indicated on its recently acquired 3-D seismic data while planning offset development wells to successful deep tests.
In other exploration news, 100% of PXP's Point Arguello partners have elected to participate in the extended reach drilling of the eastern half of the P-0451 lease ("Rocky Point structure"). PXP's working interest will be 52.6% with a 43.8% revenue interest. Conversion and upgrade of the necessary drilling rig is well underway with an expected start of drilling operations by May.
Breton Sound: In PXP's Breton Sound Extension (BSE) joint venture activity area, the initial test well spud in November 2003 and thus far PXP has five discoveries with one dry hole. Four of the discoveries have been completed and are flowing to sales. Present sales rate is approximately 14,200 MCFD gross, 6,000 MCFD net to PXP of dry gas. The fifth discovery well is being completed with initial flow to sales expected later this month. PXP is currently drilling its seventh BSE exploitation well. Drilling and completion operations should continue in BSE through most of 2004. PXP's working interest is 56.25% and its revenue interest is generally about 42%. In PXP's BSE-West activity area, acquisition of approximately 178 square miles of 3-D seismic data has been completed. PXP will participate in BSE-W drilling with an approximate 37.5% working interest. Initial drilling is likely to begin in the second half of 2004.
In PXP's original Breton Sound Area (BSA), PXP's previously reported discovery at the Perseus Prospect was connected to sales in November 2003 at a rate of 8,400 MCFD and 570 BCPD (approx. 775 net BOEPD) and the previously announced discovery at the Aquarius Prospect started sales in December 2003 at 10,700 MCFD and 700 BCPD (approx. 975 net BOEPD). PXP's Draco prospect was spud in October 2003 and resulted in a discovery which was completed and connected to sales in February 2004 at a rate of 7,200 MCFD with negligible condensate (approx. 470 net BOEPD). PXP's Hercules and Ursa Major prospects were spud in late 2003 and both reached and logged target horizons but have been plugged as dry holes. PXP's success rate at BSA since program inception in late 2001 has been 12 discoveries in 15 attempts.
As a further expansion on PXP's success in the greater Breton Sound area, PXP has acquired an additional approximately 80 square miles of 3-D seismic data in an area PXP refers to as Breton Sound Extension-East (BSE-E). PXP has secured five prospects in the area subject to additional geophysical validation work. PXP will operate in this area with a 75% working interest. Initial drilling in BSE-E is most likely to begin in 2005.
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