Spinnaker Details New Discoveries in the Gulf of Mexico

Spinnaker Exploration Company summarized its operating activities since February 17, 2004. The Company also detailed several new discoveries, including a success at the San Jacinto prospect and an extension of the Spiderman/Amazon Field, both in the Eastern Gulf; and a new discovery at High Island 201. The Company also provided production estimates for the second quarter and full year 2004.

Production for the first quarter 2004 totaled 10.3 billion cubic feet of gas equivalent (Bcfge), including approximately 8.3 Bcf and 332,000 barrels of oil (BO), or approximately 113 million cubic feet of gas equivalent per day (MMcfged). Current production is approximately 160 MMcfged.

Per unit lease operating expense (LOE) inclusive of severance tax and workover expense was $0.46 per thousand cubic feet of gas equivalent (Mcfe) produced during the quarter. Production delays from several new fields caused by weather increased the LOE rate approximately $0.03/Mcfe.

Since February 17, 2004, Spinnaker has participated in four successful wells in five attempts. A summary of successful wells follows.

                                                 Net Revenue
                                     Working       Interest
    Well                          Interest (WI)      (NRI)      Operator

    Amazon #2 (DC 620 #1)               18%           16%*      Anadarko
    San Jacinto #1 (DC 618 #1)          27%           23%*      Dominion
    Texas Leaguer (HI 201 #1)           42%           32%       Spinnaker
    Kauai (SS 145 #E-2)                 25%           20%       Tana

     *  Could qualify for Royalty Suspension on the first 12 million BO
        equivalent (72 Bcfge), subject to prevalent gas price.  In that case,
        Spinnaker's NRI in the Spiderman/Amazon and San Jacinto fields would
        be 18% and 27%, respectively.

The Company's unsuccessful exploratory attempt was located at Bases Loaded (West Cameron 310). The Company held a 75% WI in that prospect.

Spinnaker has participated in 94 successful wells in 155 attempts since inception (61% gross/61% net).

The Company is currently involved in seven rig operations. Four of the operations are located on the shelf and three are located in deep water. Four of the operations are operated by Spinnaker. Five of the operations are exploratory and two involve completion activities.

Various activities are ongoing in twelve field areas in which Spinnaker owns interests. The following summary information updates the Company's progress on many of these projects.

San Jacinto Discovery (DeSoto Canyon 618/619)
The DeSoto Canyon 618 #1 has resulted in a natural gas discovery at the San Jacinto prospect. The discovery well was drilled to a measured depth (MD) of 15,829 feet and encountered multiple productive middle Miocene sands. Pay thicknesses are in line with Spinnaker's pre-drill estimates and total approximately 100 feet true vertical depth (TVD). Reservoir quality is excellent. All productive intervals are hydrocarbon-filled to the base of the sands encountered.

No sidetrack operations are planned for the discovery well, although additional wells and/or sidetracks could be required to produce the likely resource at San Jacinto. The DC 618 #1 was drilled to a structurally high position and will serve as a producing well from its current bottom-hole location. An adjacent fault block appears to be low risk in light of the DC 618 #1 results. Plans to delineate and develop the field are not yet finalized.

The San Jacinto field is located approximately six miles west of the recently discovered Spiderman/Amazon field, in which Spinnaker owns an interest. Infrastructure alternatives for Spiderman/Amazon are progressing well and would likely accommodate production volumes from the San Jacinto discovery. Additional exploratory drilling is planned by Spinnaker and its partners to test other prospects in its Eastern Gulf inventory during 2004.

Spinnaker owns a 27% WI and 23% NRI in the San Jacinto discovery. The well is situated in 7,800 feet of water, approximately 95 miles southeast of Venice, Louisiana.

Spiderman/Amazon Delineation (DeSoto Canyon 620/621)
The DeSoto Canyon 620 #1 has successfully extended the Spiderman/Amazon field to the west. The well was drilled to a total depth of 17,020 feet MD and encountered approximately 200 feet TVD of natural gas pay. Pay thicknesses were above Spinnaker's pre-drill estimates for this location. Through pressure data gathering, lateral continuity was confirmed between this well and the discovery well on DeSoto Canyon Block 621 which was drilled last year. Production casing was set and cemented to total depth in this successful delineation well, setting up this wellbore to be completed in the future as a producer.

Spinnaker owns an 18% WI and 16% NRI in the Spiderman/Amazon discovery.

Texas Leaguer Discovery (High Island 201)
Spinnaker and its partners have drilled a natural gas discovery at High Island 201. The HI 201 #1 was drilled to a total depth of 12,700 feet MD, encountering productive Rob M-5 interval. The well was then sidetracked updip where it successfully encountered a gross productive interval of approximately 185 feet TVD. Net pay thicknesses are in excess of 120 feet TVD and exceed Spinnaker's pre-drill estimates for the prospect.

Infrastructure alternatives are being evaluated for the discovery. First production is anticipated in the fourth quarter. The new field is located in 47 feet of water, approximately 34 miles southeast of Galveston, Texas.

Kauai (Ship Shoal 145)
Spinnaker has participated in its second successful well at Ship Shoal 145. The SS 145 #E-2 was drilled to a depth of 6,352 feet and found approximately 40 feet of hydrocarbon-bearing sand. This well and a prior discovery have now commenced production at a combined rate of 22 MMcfged. Spinnaker owns a 25% WI and 20% NRI in the block and two wells. The field is located in 46 feet of water, approximately 55 miles southwest of Fourchon, Louisiana.

Front Runner/Front Runner South/Quatrain Field Development (GC 338/339/382)
The Front Runner spar hull has been towed to the field site and has been ballasted to the vertical position. Present activities include installation of the nine mooring lines and pumping of the fixed ballast material into place. The topsides facility is essentially complete and is undergoing commissioning work and final preparations prior to its sail away in late May. The topsides will then be installed atop the hull with the handover from the contractor expected soon thereafter. The completion rig will then be mobilized onto the spar facility and the initial set of top tensioned risers will be run onto the existing wellheads. The upstream portions of the oil and gas export lines, including the steel catenary riser sections, have been installed on the sea floor. The remainder of the export lines will be installed during May and June.

Relative to exploration in the area, Spinnaker and its operating partner will soon commence exploratory operations at the Palmer Prospect, located in Green Canyon Blocks 603/604. The Palmer prospect is located approximately 20 miles south of Front Runner. If successful, this gas prospect could be tied back to the Marco Polo merchant hub, located approximately 14 miles to the northeast. Spinnaker owns a 25% WI and 22% NRI in Palmer.

Additionally, the Front Runner owners will likely commence one additional exploratory test in the immediate Front Runner Basin during the third quarter of 2004. That well would be drilled on either the Front Runner Northwest or Quatrain South prospects. Spinnaker owns a 25% WI in both prospects.

Eugene Island 343/344
The Eugene Island 344 #1 has commenced production at a rate of 25+ MMcfged. Additional drilling potential is being evaluated.

Spinnaker holds a 100% WI and 78% NRI in the well and blocks.

East Cameron 312
A new tripod facility has been completed and placed in service. Three wells are producing combined rates of approximately 26 MMcfged.

Spinnaker holds a 100% WI and 83% NRI in the wells and blocks.

Grasshopper Field (Grand Isle 52)
The Grand Isle 52 #L-12 has been completed and is producing approximately 25 MMcfged.

Spinnaker holds a 50% WI and 43% NRI interest in the well and field. The GI 52 #L-12 is the third producer at Grasshopper.

Spinnaker participated in a total of 15 Apparent High Bids (AHB) in OCS Sale #190, held in New Orleans on March 17, 2004. To date, a total of nine bids have been awarded; five in deep water; four on the shelf.
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