Kerr-McGee Acquires Additional Interests Offshore Trinidad and Tobago

Kerr-McGee Oil & Gas, through its Trinidad and Tobago affiliates, has acquired a 25% interest in the southern part of Block 2(c) Retained Exploration Area (REA) and a 30% interest in Block 3(a) offshore Trinidad and Tobago.

Block 2(c) REA and Block 3(a) are contiguous with Block 3(b) and adjacent to the Angostura field in depths ranging from 150 to 300 feet of water. Partners in Block 2(c) REA are BHP Billiton with a 39% working interest and Talisman with a 36% working interest. Partners in Block 3(a) are BHP Billiton with a 30% working interest, Talisman with a 30% working interest and Total holds the remaining 10% working interest. BHP Billiton operates both blocks. The acquisition is subject to the approval of the Ministry of Energy and Energy Industries.

"This acquisition is an example of our creative business strategy," said Dave Hager, Kerr-McGee chief operating officer. "We acquired interests in these blocks as part of a multi-party trade in which we reduced our interest in Block 3(b) to gain interest in the southern part of Block 2(c) REA and Block 3(a). The move also is consistent with our strategy of highly focusing exploration in world-class proven petroleum provinces."

With the addition of the blocks, Kerr-McGee holds interests in more than 340,000 gross acres offshore Trinidad and Tobago. In addition to the Trinidad program, Kerr-McGee anticipates drilling four additional new-field wildcat wells within the next six months, two offshore Angola and two offshore Brazil.