Kerr-McGee Ramps Up Gulf of Mexico Production Following Recent Hurricanes

Kerr-McGee says that it has increased its net production in the Gulf of Mexico to approximately 95,000 barrels of oil equivalent per day (BOE/d), representing nearly 75% of pre-hurricane volumes. Kerr-McGee's facilities sustained only minor damage from the hurricanes and restoration of additional production is dependent upon third-party infrastructure. Kerr-McGee expects to be producing more than 80% of its pre-hurricane levels in the Gulf of Mexico by the end of October. Prior to hurricanes Katrina and Rita, the company's net production averaged approximately 130,000 BOE/d.

In the deepwater gulf, production has resumed from four of Kerr-McGee's five operated facilities.

     *  In the East Breaks area, production and sales from the Nansen and
        Boomvang areas are at pre-hurricane levels.
     *  In the Garden Banks area, the Gunnison field has resumed oil sales.
        Natural gas sales from Gunnison are restricted by pipelines to 70% of
        pre-hurricane levels.
     *  The Red Hawk field is awaiting start-up of associated third-party
        export lines.
     *  At the Neptune field in the Viosca Knoll area of the gulf, natural gas
        wells are producing at normal rates and associated oil is being
        offloaded to a barge.  Full production from the platform oil wells is
        dependant upon restoration of the oil export pipeline system.
     *  Kerr-McGee also holds interests in the deepwater facilities at
        Baldpate and Conger, which have restarted production.

On the shelf, production is being brought on line as third-party onshore infrastructure is repaired.

The company is closely monitoring weather conditions impacting the Gulf of Mexico and will continue to take appropriate actions to ensure the safety of its workers and contractors and to protect the environment.

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