|Thursday, January 06, 2000
Kerr-McGee Corp. announced the expansion of the Nansen prospect in the Gulf of Mexico, with the second successful appraisal well, East Breaks 602 #3. The 14,050-foot appraisal well encountered approximately 240 feet of net oil and gas pay. The Nansen area includes East Breaks 601, 602 and 646, all operated by Kerr-McGee Oil & Gas Corp., with a 50 percent working interest. Ocean Energy Inc. holds the remaining 50 percent. Reserves are now estimated to be in the range of 500 to 600 billion cubic feet of gas equivalent, which is an increase from the previously announced 350 to 450 billion cubic feet. This second appraisal well encountered primarily oil pay, while the previous two Nansen wells were primarily gas with small oil content. The well is located in 3,680 feet of water, approximately 3,000 feet east of the discovery well in an adjacent down-thrown fault block. A third appraisal well, the East Breaks 602 #4, will be spud in the first quarter to test the down-dip limit in the original discovery fault block, as well as additional deeper potential. This well will be located 11,500 feet northeast of the original discovery well. Additionally, Kerr-McGee announced a successful appraisal well, East Breaks 643 #3, in a separate fault block on the North Boomvang prospect. This 11,591-foot well, in 3,449 feet of water, encountered approximately 165 feet of net oil and gas pay. The Boomvang area, as previously announced, is believed to have a reserve range of 70 to 100 million barrels of oil equivalent. Development scenarios are being evaluated along with the Nansen area. Kerr-McGee operates the greater Boomvang area, including East Breaks 641, 642, 643, 688 and 732 with a 30 percent working interest. Partners are Reading and Bates Development Co., a wholly owned subsidiary of R&B Falcon Corp., 50 percent, and Ocean Energy Inc., 20 percent.