Kerr-McGee Extends Brazilian Field with Appraisal Well

Kerr-McGee reports the successful appraisal of the Chinook field in the BM-C-7 block (Campos Basin) offshore Brazil.

"The 3-ENC-4-RJS appraisal well proves the extension of the field another mile-and-a-half to the northeast of the discovery well," said Dave Hager, Kerr-McGee chief operating officer. "As a result of this penetration, we are increasing the estimated resource range of this field from the previous range of 100 million to 200 million barrels of oil, to 150 million to 250 million barrels of oil."

The 3-ENC-4-RJS appraisal well located approximately 1.5 miles to the northeast and updip from the discovery well, reached total depth of 7,692 feet and encountered approximately 80 feet of net pay in the Cretaceous Carapebus formation. The successful appraisal follows a previous successful test, which was announced in September 2005. Both wells were drilled by Pride International's Pride South Atlantic. The 3-ENC-3-RJS appraisal well was drilled 2.5 miles southwest of the discovery well and tested at rates between 1,400 and 1,800 barrels of (14 degrees API) oil per day. Feasibility studies now are under way to evaluate potential commerciality and development options for the Chinook field.

Kerr-McGee owns a 50% working interest in the 133,000-acre BM-C-7 block located in approximately 350 feet of water, approximately 125 miles southeast of Rio de Janeiro. EnCanBrasil, a subsidiary of EnCana Corporation holds the remaining 50% working interest and is the operator of the block.

Kerr-McGee expects to drill up to eight additional exploration wells during the next four years in the Campos and Espirito Santo Basins offshore Brazil. The identified targets carry an estimated resource potential in the range of 100 million to 400 million barrels of oil. Kerr-McGee currently holds interests in more than 1.1 million gross acres offshore Brazil.
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