Unocal Makes Discovery on St. Malo Prospect in U.S. Gulf



Unocal has made a major discovery on the deepwater St. Malo prospect in Walker Ridge block 678 in the Gulf of Mexico.

The discovery well encountered more than 450 net feet of oil pay over a gross hydrocarbon column of 1,400 feet, indicating that St. Malo is a major hydrocarbon accumulation.

The company said that it expects to begin an appraisal program in early 2004, based on the current evaluation of resource potential.

"The potential volumes at St. Malo give us the confidence to call this discovery a significant milestone in our Gulf of Mexico deepwater program," said Mike Bell, Unocal's vice president for the Deepwater USA unit. "St. Malo represents a valuable addition to our portfolio of discoveries, and we have excellent leverage in this emerging play with a robust portfolio of projects and leads in the Keathley Canyon, Green Canyon and Walker Ridge areas."

The St. Malo well spud on July 6 and was drilled to a depth of 29,066 feet in 100 days at an estimated gross cost of $62 million. The well is located in 6,900 feet of water about 250 miles south-southwest of New Orleans. The well was drilled from the Discoverer Spirit drillship.

Unocal is the operator and holds a 28.75-percent working interest in the prospect. Unocal's co-venturers in the St. Malo prospect are Petrobras with 25 percent; Devon Energy with 22.5 percent; ChevronTexaco with 12.5 percent; EnCana with 6.25 percent; ExxonMobil with 3.75 percent; and Eni with the remaining 1.25 percent.

Upon completion of the St. Malo well, Tansocean's drillship, Discoverer Spirit, will be released to move on to the ExxonMobil Hawkes appraisal well in Mississippi Canyon 508.
RELATED COMPANIES
Company: Exxon Mobil Corporation more info
Operates 13 Offshore Rigs
 - ExxonMobil Says Julia, Hadrian South Operations Back To Normal After Nate (Oct 10)
 - Iraq's Talks with Exxon on Southern Oilfields in Final Stages-Minister (Oct 09)
 - U.S. Gulf Oil Producers Start Evacuating Staff Ahead of Tropical Storm Nate (Oct 05)
Company: UNOCAL more info
 - Brenham Inks PSC Agreement for Equatorial Guinea Block (Dec 20)
 - PetroChina Is Set to Go It Alone (May 26)
 - KBR Scores Major FEED Contract for Chirag Oil Project in Caspian Sea (Mar 23)
Company: Chevron Corporation more info
 - Chevron Approves New Tech Investment To Raise Output At North Sea Field (Oct 20)
 - Canada's Keyera Signs Pact With Chevron To Transport, Store NGL (Oct 10)
 - Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
Company: Transocean Ltd. more info
Manages 46 Offshore Rigs
 - Oil's Biggest Rigs Headed to Junkyard as Daily Losses Mount (Oct 18)
 - Transocean To Buy Norwegian Rig Firm Songa Offshore For $1.1B (Aug 15)
 - Borr Drilling Signs Deal With Transocean to Buy 15 Rigs (Mar 20)
Company: Devon Energy more info
 - Shale Drillers Show Few Signs of Slowing as Profits Expand (Aug 02)
 - Devon Energy Trims Full-Year Spending (Aug 01)
 - Devon Energy Plans To Divest $1B Assets; Profit Beats (May 02)
Company: EnCana more info
 - Encana Calls End to Permian Race as Focus Turns to Output (Oct 18)
 - Canada's Encana Smashes Profit Estimates, Shares Rise (Jul 21)
 - Encana To Sell Natgas Assets To Caerus Oil For $735MM (Jun 09)