Unocal Announces Results from Ponza

Unocal Corporation confirmed that it concluded drilling operations at its deepwater exploration well on the Ponza prospect in Keathley Canyon block 774 in the Gulf of Mexico in March 2001.

Although the well reached its objectives and penetrated hydrocarbon-bearing zones, the company said it does not appear to hold commercial quantities of pay. The well was plugged and abandoned; however evaluation of data from the Ponza well is continuing. Results were not disclosed sooner for competitive reasons related to the OCS Lease Sale 180.

Under terms of farm-in agreements, Unocal incurred no net costs on the Ponza well. Unocal is the operator and holds a 50-percent working interest in Keathley Canyon block 774. Ocean Energy, Inc. holds a 25-percent working interest in the Ponza well. The remaining 25-percent working interest is held by another company, which was not named.

Unocal is currently operating an appraisal well at the Mad Dog prospect (Unocal, 15.6% working interest), a previously announced discovery located in Green Canyon block 826. The next deepwater well Unocal plans to drill is an appraisal well at the recently announced Trident discovery, drilled on Alaminos Canyon block 903. Unocal is operator of Trident and holds a 59.5-percent working interest in the seven-block discovery. Co-venturers include Chevron U.S.A. Production Company, 15%; Ocean Energy, Inc., 12.75%; Agip Petroleum Co., the American subsidiary of Eni SpA, 8.55 %; and Phillips Petroleum Inc., 4.2%.