Trident Exploratory Well Yields Significant Pay

Chevron U.S.A. Production Co.'s Gulf of Mexico Deepwater Business Unit announced more than 300 feet of hydrocarbons were encountered in an exploratory well on the Trident prospect in the deepwater Gulf of Mexico.

The Alaminos Canyon 903 wildcat was drilled in 9,687 feet of water by the Discoverer Spirit, encountering a significant column of hydrocarbons and setting a new world record for drilling in ultradeepwater. The well was drilled to a total depth of 20,500 feet in 66 days at an estimated cost of $34 million.

The Trident prospect covers seven blocks in Alaminos Canyon and is located approximately 185 miles east of Corpus Christi, Texas. Chevron has a 15 percent interest in the prospect along with majority partner Unocal Corp. (59.5 percent) and Ocean Energy, Inc. (12.75 percent), Agip Petroleum Co. (8.5 percent) and Phillips Petroleum Inc. (4.25 percent).

Chevron holds leases on 400 Gulf of Mexico blocks in water depths exceeding 1,000 feet. More than 50 of those leases are located on numerous high-potential prospects on-trend with this discovery. A Trident appraisal drilling program will begin in 2002.

Chevron currently has a net production of more than 38,000 barrels of oil and equivalent gas per day (boegd) in the deepwater Gulf of Mexico from the Chevron-operated Genesis field, and Gemini, a joint venture project operated by Texaco Inc. Chevron's second deepwater production facility, Typhoon, is expected to begin production by the end of this month. Chevron's Gulf of Mexico Shelf Business Unit produces 235,000 net boegd in Gulf of Mexico waters less than 1,000 feet deep.