Kerr-McGee Makes Discovery at Red Hawk

Kerr-McGee Corp. announced another discovery in the deepwater Gulf of Mexico, at its Red Hawk prospect, Garden Banks block 877. Located in more than 5,300 feet of water, the 23,500-foot discovery well encountered more than 135 feet of gas and gas condensate pay in two zones. A successful updip appraisal sidetrack to the discovery encountered about 175 feet of gas and gas condensate pay.

"Red Hawk continues our string of deepwater discoveries," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "Located south of the Baldpate and Conger developments, in an area where we currently hold 21 blocks, this discovery continues our long-term strategy of developing core areas in high-potential trends."

At this time, Kerr-McGee estimates reserves to be in the range of 300 billion to 500 billion cubic feet of gas. The company is currently planning to drill an appraisal well south of the discovery to further evaluate the extent of the field. Development options are being evaluated.

Kerr-McGee operates Red Hawk with 50% interest, and Ocean Energy, Inc. holds the remaining 50% interest. The two companies expect to drill another deepwater gulf prospect, South Titan in Walker Ridge block 313, before year-end.