Kerr-McGee & Sonangol Ink Deal for Exploration on Block 10 Offshore Angola

Kerr-McGee Angola Ltd., a wholly owned affiliate of Kerr-McGee Oil & Gas Corp., has signed an agreement with Angola's national petroleum company, Sonangol, to explore for hydrocarbons on block 10 offshore Angola.

The agreement gives Kerr-McGee a 25% contract interest in block 10, which is operated by Devon Energy Corp. with a 35% contract interest. Sonangol and affiliates retain a 40% contract interest.

"Obtaining interest in this offshore Angola block is consistent with our strategy of pursuing high-potential exploration opportunities in proven world- class petroleum provinces," said Dave Hager, Kerr-McGee senior vice president responsible for oil and gas exploration and production. "We have successfully used this strategy for our entry positions in China's Bohai Bay, the Brazilian Campos and Espirito Santo basins, and the North Slope of Alaska. We believe the Benguela Basin is an under-explored basin with exciting hydrocarbon potential. Two primary prospects have been identified through an extensive 3-D seismic program covering a majority of the block. Both prospects appear to have the potential to be stand-alone developments if successful."

The block is located offshore the town of Lobito. It extends from the coastline to 30 miles offshore and covers approximately 1.2 million acres with water depths extending to approximately 3,300 feet (1,000 m). Kerr-McGee anticipates drilling one to two wells on block 10 this year.

"We appreciate the cooperation of Sonangol and look forward to another deepwater partnership with Devon," said Hager.