Kerr-McGee's Deepwater Success Continues with Ticonderoga

Kerr-McGee continues its success in the deepwater Gulf of Mexico with the Ticonderoga discovery well and initial sidetrack which encountered more than 250 feet of net high-quality hydrocarbon pay, primarily oil, in three zones. Kerr-McGee estimates that Ticonderoga, located on Green Canyon Block 768 in approximately 5,250 feet of water, offers potential resources of 30 million to 50 million barrels of oil equivalent. Operated by Kerr-McGee with 50% interest, Ticonderoga could be developed as a subsea tieback to the company's 100%-owned Constitution truss spar facility that will be located five miles to the north. Noble Energy owns the remaining 50% interest.

The Ticonderoga well, spud on March 21, was drilled to a total measured depth of 13,556 feet using Noble Drilling's semisub, Noble Amos Runner. A sidetrack confirmed the down-dip limit of this reservoir. Currently, the company is performing reservoir modeling, with plans to carryout additional appraisal work this year.

"Consistent with our strategy of creating hubs in core areas, our nearby Constitution facility would allow for the successful development of Ticonderoga, which would further enhance the original economics of the Constitution project," said Dave Hager, Kerr-McGee senior vice president responsible for oil and gas exploration and production. "With our expertise and high-quality prospect portfolio, our balanced exploration program continues to provide successful results."

In addition, Kerr-McGee has completed drilling activities at the Dawson Deep prospect in the gulf and is evaluating opportunities for its development as a subsea tieback to the company's Gunnison facility. Dawson Deep, located about three miles from Gunnison on Garden Banks 625, is operated by Kerr-McGee, with a 25% working interest and a 21.9% net revenue interest. Partners are McMoRan Exploration Co. et al, 50% working interest, and Nexen Petroleum Offshore U.S.A. Inc., 15% working interest.