"Although disappointed that we were unable to test our primary objectives, we have learned a great deal about drilling ultra-deep wells," said David A. Trice, Newfield Chairman, President and CEO. "This has been a challenging well to test a true frontier play, but Newfield is sufficiently encouraged to continue investing in this play. We intend to use the information gathered from this well to investigate if a well can be designed which will allow us to safely test this prospect in the future."
Newfield has invested approximately $25 million (net) to date in the drilling of the Blackbeard West #1 well, which covers multiple blocks in the South Timbalier and Ship Shoal areas offshore Louisiana in the Gulf of Mexico. The Blackbeard West Prospect is subject to a 1.25% overriding royalty interest held by the Treasure Island Royalty Trust.
Blackbeard West #1 is operated by Exxon Mobil Corporation, with a 25% interest in the well. Newfield has a 23% interest. Other co-venturers include BP Exploration and Production Inc. (20%), Petrobras America Inc. (20%), Dominion Exploration & Production Inc. (7%) and BHP Billiton Petroleum (Deepwater) Inc. (5%).
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