Shell Makes Great White Discovery

Shell Exploration & Production Company along with partners BP and ChevronTexaco confirm that hydrocarbons were encountered during the drilling of the Great White Prospect located in 8,009 feet of water on Alaminos Canyon Block 857 in the Western Gulf of Mexico. Further appraisal drilling is planned to determine the extent and the commerciality of the discovery.

The Deepwater Nautilus, a fifth generation semisubmersible owned by Transocean Inc. and under long-term contract to SEPCo, began drilling operations on March 6 and reached its final depth on May 18, 2002. The discovery well was drilled to a true vertical depth of 19,907 feet.

Six Alaminos Canyon blocks are held in the Great White area by some or all of the working interest owners. These are -- 813, 814, 857, 858, 900 and 901 -- located about 200 miles from Galveston, Texas in water depths ranging from 7,500 to 9,500 feet. The blocks were acquired for $9.4 million in OCS Lease Sales 161 and 171 in 1996 and 1998. The working interest owners have an equal share in the block on which the discovery well was drilled.