ENI Begins Production from King Kong and Yosemite Projects

Eni announced that the King Kong and Yosemite projects in the Gulf of Mexico started production at approximately 120 million cubic feet of natural gas per day with the target to reach 150 million per day. Both projects are located in the Green Canyon area, are being developed by three subsea wells in 3,838 feet of water and connected to Agip Petroleum's Allegheny platform, approximately 15 miles away.

Eni, through its affiliate Agip Petroleum Co. Inc., with 50% ownership is the operator for the production phase and future development activity. Production start-up occurred thirteen months after Agip received approval and eight months after the Yosemite discovery.

With such production, Agip Petroleum consolidates its position in the highly competitive and prolific area of the Gulf of Mexico, reaching a level of 62,000 net boepd, 70% of which is from deepwater. The development of these deepwater fields forms an increasingly important component of Agip Petroleum's asset portfolio.