Spinnaker Announces First Quarter Results

Spinnaker Exploration Company has provided a summary of its operating activities since its last update of February 14, 2002, including details related to five new exploratory successes. Production and cost expectations for the second quarter and full year 2002 were also furnished by the Company.

Production for the first quarter totaled 9.8 billion cubic feet of gas equivalent (Bcfge), including 9.3 Bcf and 73,000 barrels of oil (Bo). Production for the quarter was in line with expectations. Current producing rate is approximately 101 million cubic feet of gas equivalent per day (MMcfged). The Company anticipates that significant new production will commence during the second and early third quarters and that its net volumes should benefit in the second half of the year. In addition to anticipated volumes from new field developments, recompletion and some development drilling should result in volume gains from several existing field areas as well.

Per unit lease operating expense (LOE) inclusive of severance taxes, workover expense and transportation expense was $0.35/thousand cubic feet of gas equivalent (Mcfe). Workover expense accounted for $0.09/Mcfe of this total during the quarter.

Since February 14, 2002, Spinnaker has drilled or participated in five successful and one unsuccessful exploratory well.

The Company has now drilled 63 successful exploratory wells in 103 attempts since inception (61%). On a net basis, Spinnaker has been 62% successful since inception.

The Company currently has eleven rig operations in progress. Ten rigs are operating on the shelf and one in deep water. Nine rigs are operating on exploratory locations, one on a development well and one on a recompletion. Spinnaker is operating eight of the rigs.

Drilling, completion, recompletion, evaluation, design and/or construction is ongoing in sixteen fields currently. Six of these fields are located in deep water and ten are located on the shelf. Ten of these developments are expected to add incremental production volumes during 2002.

Resolute Field -- the High Island 197 #2 has drilled and evaluated the Rob L and Rob M-1 sand sequences through a current total depth of 15,942 feet. After casing is set, the well will continue drilling to approximately 20,000 feet in order to test the Rob M-2 sequence.

Thus far, the well has penetrated and evaluated approximately 300 gross feet of true vertical depth (TVD) hydrocarbon pay and appears to be productive in the Rob L-3, Rob L-5, Rob L-5 (lower), Rob M-1 and Rob M-1 (lower) horizons. The evaluated reservoirs are of high quality. The well has thus far added three new reservoirs to the field and demonstrated thickened pay in one other. A six-slot, four-pile platform has been constructed and is now in place at the HI 197 #1 location. First production should commence by mid-year. Following the completion of the HI 197 #2 (most probably by the third quarter), a third field well will be drilled as the HI 175 #2. That well will develop up-dip reserve in two reservoirs encountered in both the HI 197 #1 and #2 wells. Production of 75-100+ million cubic feet of gas per day (MMcfgd) from the first three wells is anticipated by late third quarter. One to two additional exploratory wells are anticipated for the blocks during 2002. Spinnaker operates the Resolute Field with a 50% WI and 42% NRI.

Spinnaker has concluded drilling and completion operations at the HI 167 #2 well (100% WI, 83% NRI). The well encountered productive Rob-M sands and should commence production at a rate of approximately 15 MMcfgd this week. This new discovery is unrelated to the HI 167 #1 (50% WI, 42% NRI), which is currently producing 16 MMcfgd and 250 Bcpd. The Mayflower Field was discovered by Spinnaker in December, 2001. A large deep structure remains untested on the block and is owned 100% by Spinnaker.

Constellation Field -- One recompletion and one fault-block wildcat are currently underway in the Constellation Field area. Additionally, compression is being placed on the HI 199 platform. The recompletion of the HI 202 #A5 well to the Rob L-2 reservoir should be completed in approximately 60 days. It is anticipated that the well will be produced at a rate of 25-30 MMcfgd. A previously untested fault block in the A7 field will be explored via the sidetracking of the HI A7-A2 well. This well will test the Rob L sequence. Spinnaker will own approximately 80% WI and 67% NRI in the well. Spinnaker operates the Constellation Field with a 75% WI and 62% NRI.

Galveston 352 -- This recent discovery is situated in 80 feet of water, approximately 33 miles southeast of Galveston Island, Texas. The well was drilled to a depth of 11,530 feet and encountered two productive Tex-W sands. The well has been completed and a caisson has been driven. A tripod facility and flowline will be constructed and installed with first production anticipated during the fourth quarter of 2002. Spinnaker owns a 33% WI and 28% NRI in the non-operated discovery.

South Timbalier 274/275 -- Production recently commenced from the ST 274 #1 at a rate of approximately ten MMcfgd and 800 Bcpd at a flowing tubing pressure (FTP) of 7,000 pounds per square inch (psi). Spinnaker owns a 90% WI and 75% NRI in the well and platform.

A second well has been commenced from the platform to test a separate feature in ST Block 275. Spinnaker operates that well with a 50% WI and 38% NRI.

North Padre Island 861 (Stirrup Unit) --Production commenced from this discovery on April 2, 2002 at a rate of 12.8 MMcfgd and 115 Bcpd. The well is currently curtailed due to downstream liquids handling capacity. This restriction should be removed during the fourth quarter of 2002 with the completion of facility upgrades being made at the onshore processing point. Completion activities continue in the field. Spinnaker operates the Stirrup Unit with a 42% WI and 34% NRI.

The Grand Isle 52 exploratory test has been successfully completed. That well has recently commenced production at a sustained rate of 2,800 BOPD and six MMcfgd at 5,125 psi FTP. The discovery well was drilled to a depth of 19,077 feet.

A second well is currently drilling from the platform toward a structurally high location and a projected total depth of 20,070 feet. Spinnaker owns a non-operating 50% WI and 43% NRI in the well and field.

Brazos A-19 (Alex Deep) -- The Brazos A-19 #3 has commenced production at a restricted rate of approximately 100 MMcfgd at 10,500 psi FTP. Additional cooling capacity is required in order to increase the flow rate further while remaining within pipeline specifications. Additional exploratory drilling on the block is being discussed. Spinnaker owns a 15% WI and 12.5% NRI in the well and block.

Vermillion 375 -- This field was discovered by Spinnaker and its partners and has been producing since 2000 from a single well that is dually completed. Recent mapping has highlighted three new potential locations that could be drilled from the existing platform. All three locations are exploratory in nature. Drilling operations will commence shortly and based upon results, the Company may drill all three locations with a single rig mobilization. Spinnaker operates the field with a 70% WI and 51% NRI.

Green Canyon 338/339 (Front Runner and Front Runner South Fields) -- The partners in this project have now sanctioned the development of these two large oil fields. We have approved a plan for the development of the area utilizing a truss spar type floating production system with a handling capacity of 60,000 BOPD and 110 MMcfgd. Spinnaker anticipates production to commence from these fields in the first half of 2004.

Additional drilling success has also been experienced in the area. Green Canyon 338 #4 has been drilled to a total depth of 24,258 feet. The well encountered a total of 790 feet (TVD) of hydrocarbon-bearing sands in five main sequences. The well also proved continuity of the main Front Runner South field pays over a significant area. The well encountered approximately 370 feet of pay in reservoirs previously not found productive in the field.

The well also encountered significant shows in sands equivalent to the targets for the Quatrain prospect, located primarily on Green Canyon Block 382. A well designed to test the Quatrain prospect in an optimal fashion should commence in two-three weeks.

Spinnaker owns a 25% WI in Green Canyon blocks 338, 339, 382 and 10 additional, contiguous blocks in the area. The Company also owns a 50% WI and operates the Yankee Clipper prospect (two blocks), located immediately south of the Front Runner area and a 25% WI in the Palmer prospect (two blocks), also located south of the Front Runner area. The Company anticipates that two-three wildcats will be drilled on its Front Runner area holdings during 2002.

Green Canyon 177 (Sangria) -- Flowline and umbilical installation is complete from this subsea completion to the nearby host production platform. Final platform modifications are in progress and the Company anticipates first production by mid-year, 2002.

The Sangria well was completed from two sands flowing at a rate of 14.6 MMcfgd and 1,700 Bcpd. The well is located in 1,490 feet of water. Spinnaker owns a 100% WI and 88% NRI in the well.

Mississippi Canyon 299 (Seventeen Hands) -- Several development options are being evaluated for this 2001 discovery. Spinnaker and partners were apparent high bidders in OCS Sale 182 on a block directly offsetting the discovery. That prospect, if productive, might be jointly developed with Seventeen Hands with the effect of improving economics for both projects. Spinnaker owns a 25% WI in block MC 299 and its direct offset.

Additionally, Spinnaker participated in Apparent High Bids (AHB) at OCS Sale 182 on a total of eight other blocks in the Seventeen Hands area. Spinnaker will operate four of these blocks and will own a 50% WI in all of these blocks, should they be awarded.

Mississippi Canyon 496/497 (Zia Field) -- Progress continues in the evaluation of several tie-back options for the MC 496 #1. Spinnaker believes that the project is likely to go forward and could commence production during 2003. Spinnaker owns a 35% WI and 30% NRI in the field.

Mississippi Canyon 849 (Slammer) -- The MC 849 #1 has been temporarily abandoned after being drilled to a total depth of 16,227 feet. The well encountered approximately 140 feet of pay in five main sands. Data gathered in the well is being evaluated. Additional prospective locations exist on the block. Spinnaker owns a 34% WI in the well and block. The discovery is situated in 3,400 feet of water.

The Company placed AHB's on a total of 42 blocks; 32 in deep water and ten on the shelf. Spinnaker has also exercised its right to participate for a 25% WI in four additional blocks related to one area in which the Company participated in successful bids.

The Company's AHB's are concentrated in four main areas; Rob Trend (four blocks), Mars/Ursa Basin (six blocks), Seventeen Hands Area (nine blocks) and southern Mississippi Canyon/northern Atwater Valley (13 blocks). Spinnaker was the industry's most successful bidder at the sale. Should all AHB's be awarded, Spinnaker's Gulf of Mexico inventory would stand at approximately 1.4 million gross and 807,000 net acres.

The Company has developed production and cost forecasts for the second quarter of 2002 and reviewed estimates made for full year 2002. The Company expects to produce 10.1 Bcfe during the second quarter. Estimates for full year 2002 remain unchanged at 59 Bcfe. A dimension of uncertainty does exist in the full year estimate by virtue of the quantity of new production and the number of distinct projects anticipated to commence between now and year-end. The timing for individual projects can be affected by weather conditions, construction and installation schedules and by the availability of equipment and services related to these activities.

The Company continues to evaluate its prospect inventory in light of the current cost environment, commodity outlook, and recent exploratory and lease sale successes. Spinnaker now expects that capital expenditures in 2002 will be approximately $300 million, inclusive of the Front Runner Spar construction. The spar might still be financed separately at some point in time prior to the expected start-up of the facility in 2004.