Spinnaker Hits on Mustang Island 861

Spinnaker Exploration Company made a significant discovery of natural gas and condensate at its Stirrup Prospect located on Mustang Island Block 861, in Texas state waters of the Gulf of Mexico.

The Mustang Island 861 #1 was drilled to a depth of 17,123', tested middle Frio sands and establishes the geologically oldest production on the Shelf of the Gulf of Mexico and west of the Mississippi River. The discovery is located 25 miles south of Corpus Christi, Texas in approximately 54 feet of water. The well was drilled by Diamond Offshore's jackup, Ocean Tower.

The Mustang Island 861 #1 found gas-bearing sands in four major sequences. Three of those sequences have tested gas and the fourth was not tested. The S-3 sand has tested at rates of approximately 21.1 million cubic feet of gas per day with 130 Barrels of condensate at flowing pressures exceeding 11,000 pounds per square inch following stimulation. Gas quality is excellent. The well has been shut-in pending design and fabrication of a production platform, related facilities and flow line.

The discovery well is situated on a large faulted anticline and additional drilling will be required to fully delineate its size. Additional drilling will commence immediately following the temporary abandonment of the Mustang Island 861 #1.

Spinnaker operates the Stirrup Prospect with a 42% working interest, Dominion Exploration & Production Inc. holds a 33% working interest and Pioneer Natural Resources Company holds the remaining 25% working interest. Spinnaker and partners own identical interests in 5,600 acres related to the Stirrup Prospect.