Dominion Successfully Appraises Shelf Discovery in the Gulf of Mexico

Dominion Exploration and Production recently drilled the West Cameron 100 #2 well to delineate its previously announced WC 100 #1 discovery.

The WC 100 #2 well was drilled to 16,000 ft. true vertical depth in 41 ft. of water and encountered 155 ft. of gas pay in three Marg A sands from 13,000 to 14,000 ft. subsea. This pay is an increase compared to the 140 net feet of gas pay found in the discovery well. The #1 and #2 wells have been completed and flow tested. Each well tested at rates of 20-25 million cubic feet of gas per day (MMCFGPD). Potential reserves for the field are estimated at 100-150 billion cubic feet of gas equivalent (BCFE) making this field a significant shelf discovery.

A production platform and facilities with a design capacity of 80 MMCFGPD will be installed in late July. An 8-inch, 6-mile gas/condensate pipeline will connect the platform to an existing 30-inch pipeline system. Production is scheduled to commence during September 2002. This yields an excellent project cycle time of 8 months from discovery to first production and only 14 months from lease award to first production. Dominion E&P owns a 100% working interest in WC 100.

The West Cameron Miocene trend is a core area for Dominion E&P's Offshore Business Unit. The company has producing fields at WC 76 and WC 130 along with the discovery at WC 100. They have a total of 18 blocks in this trend including six blocks recently awarded from OCS Lease Sale 182. Eleven of the blocks are undrilled. Dominion E&P plans to drill two to three exploratory wells in the trend this year and an equivalent number in 2003.

Duane Radtke, President and CEO of Dominion E&P said "Our success at West Cameron 100 is indicative of our commitment to our Shelf program. We believe that our participation in the `deep gas' play will continue to produce attractive returns for years to come."

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