Cal Dive Acquires Proven Undeveloped Reserves

Cal Dive International, Inc. announced that its wholly owned subsidiary, Energy Resource Technology, Inc. (ERT), has agreed to acquire a 100% interest in East Cameron Block 374, including existing wells, equipment and improvements. The property, located in 425 feet of water, is jointly owned by Murphy Exploration & Production Company and Callon Petroleum Operating Company. Terms include an undisclosed cash payment to reimburse the owners for the inception-to-date cost of the subsea wellhead and umbilical, and an overriding royalty interest in future production.

Cal Dive plans to complete the temporarily abandoned number one well and perform a subsea tie-back to an El Paso owned, Kerr-McGee operated host platform located approximately 14,000 feet to the west. The cost of completion and tie-back is estimated at $7 million with first production expected in September 2002.

Owen Kratz, Chairman and Chief Executive Officer, stated, "We are excited about this opportunity to demonstrate Cal Dive's ability to create value from marginal reservoirs where prior exploratory drilling has confirmed proven undeveloped reserves. The newly commissioned Intrepid will lay the flowline with the construction tie-in work provided by the DP DSV Eclipse. Cal Dive's unique ability to assess oil and gas reservoirs and commit our assets to bring these fields into production enables customers to forgo that capital cost while realizing future value from smaller discoveries."