Amerada Hess Disappointed with Results from Faroe-Shetland Well

Amerada Hess Corporation announced that well 204/16-1 spudded by the West Navion drillship on September 1, 2002 in the Faroe-Shetland Trough in the North Atlantic was plugged and abandoned on October 17, 2002 after a 47 day operation. Well 204/16-1 was an appraisal of the Faroese 6004/16-1Z untested oil and gas discovery drilled in 2001.

The 204/16-1 well was drilled to a total depth of 4275 meters, equivalent to 4239 meters true vertical depth sub-sea in Upper Cretaceous shales. The well encountered hydrocarbons but not in sufficient quantities to justify a drill stem test.

Post-drill evaluation and an assessment of the impact of the results of the 204/16-1 well will be assisted by recently acquired proprietary 3D seismic data over both the 204/16-1 location and the Faroese discovery well 6004/16-1Z. Further appraisal of the hydrocarbon accumulations encountered in the 204/16-1 and 6004/16-1Z wells will be based upon the results of the evaluation and assessment which will be completed in 2003.

Partners in License P1029 covering Block 204/16 are Amerada Hess with 42.57%; BG with 39.60%; DONG with 16.83% and Atlantic Petroleum with 1.00%. Premier Oil has farmed in to 16% of BG's equity in license P1029 through funding of the 204/16-1 well.