Spinnakers Hits in the Gulf of Mexico

Spinnaker Exploration Company announced a significant new discovery of natural gas and condensate at its Resolute prospect located on High Island Block 197, in federal waters offshore Texas. High Island Block 197 is located approximately 35 miles southeast of Galveston, Texas, in an average water depth of 48 feet.

The High Island 197 #1 was drilled to a total depth of 13,956 feet. The well encountered approximately 140 feet (true vertical depth) of high quality hydrocarbon-bearing section in two intervals within the Miocene Robulus sequence. Both intervals are hydrocarbon filled to the base of the sands encountered. The discovery well has been completed and appears capable of sustaining high flow rates. Additional drilling is planned for the new field discovery during the fourth quarter of 2001. Engineering design is proceeding for a platform, and the related facilities required to produce the field.

Spinnaker operates the discovery and block and owns a 50% working interest and 42% net revenue interest. Partners in the project include Continental Land & Fur, 25% working interest and Westport Resources, 25% working interest.