Shell Announces Plans to Develop Manatee

Shell Exploration & Production Company (SEPCo) announced plans to develop Manatee, a subsea production system located in the Gulf of Mexico in 1,940 feet of water. Manatee will be a two-well development located approximately 160 miles southwest of New Orleans in Green Canyon Block 155. It will tie back five miles to Shell's Angus subsea manifold in Green Canyon 113, which carries production 17 miles to Shell's Bullwinkle platform in Green Canyon 65 for processing.

Manatee is the fourth subsea production system utilizing Bullwinkle as its processing hub. Previous field tiebacks to Bullwinkle include Rocky in 1996, Troika in 1997 and Angus in 1999.

"Developing Manatee continues to illustrate Shell's capability to capitalize on our extensive Gulf of Mexico infrastructure and to quickly and creatively develop low cost, value-adding opportunities," said David Lawrence, SEPCo Vice-President and General Manager.

Manatee is expected to recover in excess of 12 million barrels of oil equivalent, with peak production rates potentially reaching up to 25,000 barrels of oil per day. Production is expected to begin during the third quarter of 2002.

Shell acquired Manatee in April of 1996 during OCS Lease Sale 157. Shell is the operator of the project with a 52 percent interest with Devon Energy holding the remaining 48 percent interest. With the addition of Manatee, Shell now holds an interest in 28 deepwater fields in the Gulf of Mexico, the largest number of any company.