Spinnaker Updates Gulf of Mexico Operations

Spinnaker Exploration is currently involved in seven rig operations. Four of the operations are located on the shelf and three are located in deep water. Three of the operations are operated by Spinnaker. Six of the operations are exploratory and one involves a sidetrack of an existing well.

Various activities are ongoing in several field areas in which the Company owns interests. The following summary information updates the Company's progress on many of these projects:

Eastern Gulf of Mexico
Spiderman/Amazon Development (De Soto Canyon 620/621) The Spiderman/Amazon development plan is near completion. It is likely that the field will be developed via subsea tieback to a Floating Production Facility ("FPF") located in southern Mississippi Canyon. Project sanction is expected in 2004. The Company anticipates first production during 2007. Spinnaker owns an 18% WI and 16% NRI in the Spiderman/Amazon field.

San Jacinto Development (De Soto Canyon 618/619)
The San Jacinto well is situated in 7,800 feet of water, approximately 95 miles southeast of Venice, Louisiana. The San Jacinto development plan is currently being formulated. It will also most likely be developed via subsea tieback to the FPF located in southern Mississippi Canyon. An additional delineation well is planned by Spinnaker and its partners in early 2005, with a possible third well drilled prior to installation of the FPF. Spinnaker owns a 27% WI and 23% NRI in the San Jacinto discovery.

Other Eastern Gulf Drilling Activities
Spinnaker and its partners will likely commence an exploratory well at the West Raptor prospect (De Soto Canyon 445) in late third quarter or early fourth quarter 2004. Spinnaker owns a 21% WI in the West Raptor prospect.

Texas Leaguer Discovery (High Island 201)
The High Island 201 #1 well was completed, a caisson was driven and a flow line was laid to Spinnaker's High Island 199 platform. The well commenced production in the last week of June and is currently producing at a daily rate of 29 MMcfe. The field is located in 47 feet of water, approximately 34 miles southeast of Galveston, Texas. Spinnaker owns a 42% WI and 32% NRI in the Texas Leaguer well.

Front Runner/Front Runner South/Quatrain Field Development (Green Canyon 338/339/382) The Front Runner spar is nearing completion. Hand over of the facility to the Front Runner partners is imminent. The oil and gas export lines have been installed. The completion rig will commence mobilization in early August to install the top-tensioned production risers and complete the eight previously drilled, cased and suspended wells.

Additionally, an exploratory test at the Front Runner Northwest prospect (GC 338 #9) is drilling. Spinnaker owns a 25% WI in the Front Runner project.

Thunder Hawk Discovery (Mississippi Canyon 734 #1 ST1)
The MC 734 #1 ST1 well encountered in excess of 300 feet of net oil pay in two high-quality reservoir zones in addition to the approximately 100 feet of net pay in the previous well bore. These two zones, the main pre-drill targets, were found water-bearing in the original hole (MC 734 #1). The sidetrack well reached a total measured depth of 24,831 feet and a true vertical depth of 23,101 feet subsea and was temporarily abandoned. An additional well to explore deeper sediments and to further delineate the field is being planned by the Thunder Hawk partners and will likely commence in 2004. The prospect is located approximately 150 miles southeast of New Orleans in a water depth of 5,724 feet. Several development options are currently under consideration and will be firmed up after further delineation. Spinnaker owns a 25% WI in the Thunder Hawk discovery.

West Cameron 72 #2 Discovery
Spinnaker and its partners drilled an additional natural gas discovery at West Cameron 72. The WC 72 #2 well was drilled to total measured depth of 15,254 feet, encountering high quality Marg A-2 pay. The well was completed and a caisson was over-driven. A flow line will be laid to a host platform in West Cameron 73 at an offset distance of approximately two miles. First production is expected for fourth quarter 2004. Spinnaker owns a 25% WI and 20% NRI in the WC 72 #2 well.

Minuteman Discovery (Eugene Island 213 #1)
The Eugene Island 213 #1 well has been drilled to a total measured depth of 19,820 feet. Log-while-drilling (LWD) tools indicated approximately 50 gross feet of potential high quality hydrocarbon pay, when an underground gas flow occurred in the well. The well was successfully stabilized and is currently being sidetracked. The sidetrack hole will be drilled to the originally planned total measured depth of 22,000 feet to further evaluate the apparent pay and to test additional primary objectives on the structure. Adequate information exists to plan a development. A caisson will be over-driven and braced, and the well will be completed and tested. A flow line will be laid to a nearby production facility. First production is anticipated in late fourth quarter of 2004. Spinnaker owns a 33% WI and 28% NRI in the Minuteman discovery.

High Island 47 Incident Update
As previously reported, a fire occurred on the High Island 47 "A" platform. The platform was repaired and the well is back on-line.

The Company now anticipates production for the year of 50 - 52 Bcfe. As discussed in earlier releases, the Company experienced weather delays that impacted on-line dates for new projects and a pipeline curtailment at Brazos A-19 totaling approximately 4 Bcfe.