Eni Lassos Another Successful Well at Longhorn

ENI permits in the gulf of mexico
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Drilling to a total depth of 4,228 meters in 740 meters of water, Diamond Offshore's semisub Ocean America has hit pay dirt at Longhorn. The final appraisal well for the Longhorn Discovery has encountered about 127 meters of net gas pay in multiple sands.

Eni is the operator of the field with 75% interest while Nexen Petroleum Offshore U.S.A. holds 25% participating interest.

The final well hit a deeper zone than the two previous wells drilled in 2006. Initial reports on the well indicate good reservoir quality, but data will continue to be evaluated with an total reserve increase expected. Initial estimates on the prospect had ranged from 60 to 250 bcfe.

By the end of the year, Eni plans to start Longhorn development, using subsea tieback to an existing platform. Production is estimated to commence in 2009.

Located in Mississippi Canyon Blocks 502 and 546, Longhorn is in deepwater Gulf of Mexico. This well is situated in Block 502, approximately 195 kilometers southeast of New Orleans.

Eni holds interest in other leases that are located in the Greater Longhorn Area, and the company has additional exploration activity planned in the area for 2008. With daily production levels exceeding 100,000 boe/d in the GOM, Eni currently holds participating interests in 439 blocks in the GOM.

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