El Paso Makes Deep Shelf Gulf of Mexico Discovery

El Paso Production has made a deep shelf discovery at West Cameron Block 75 in the Gulf of Mexico.

The West Cameron 75 No. 1 well, located 15 miles offshore Louisiana in about 35 feet of water, was spud in August 2004. El Paso logged more than 40 net feet of gas in the Lower Miocene and anticipates a high-rate completion. The well was drilled to a total measured depth of 22,824 feet. El Paso Production Holding Company operates the well and owns a 36-percent working interest and an approximate 30-percent net revenue interest. The first 25 billion cubic feet equivalent produced from the reservoir in which the well is located qualifies for royalty relief from the U.S. Minerals Management Service. Development opportunities are currently being evaluated.

"I am excited to announce this next important deep shelf discovery," said Lisa Stewart, president of El Paso's non-regulated operations. "After disappointing results in 2003 and 2004, the Gulf of Mexico team has regrouped and generated a number of quality prospects. This discovery is a result of their efforts and is a great start to 2005."

After testing the West Cameron 75 No. 1, El Paso will immediately begin drilling a second deep shelf prospect in an offsetting block, West Cameron 62. El Paso will have a 54-percent working interest in that prospect. Following the well on West Cameron 62, further development on West Cameron 75 may resume. Production from West Cameron 75 is expected to begin in the fourth quarter of 2005 after installation of facilities.