EEX Corporation's Llano No. 3 well on Garden Banks Block 386 in the U.S. Gulf of Mexico encountered 340 feet of net pay in Lower Pliocene and Miocene-age sands. The well was drilled by Global Marine's semisubmersible, Arctic I to a total depth of 25,500 feet in approximately 2,100 feet of water. This well is located about a mile northwest of the discovery well. Reserves in the Llano prospect are estimated between 200 to 250 million barrels of oil equivalent. EEX is the operator of Llano with a 30 percent working interest; Enterprise Oil holds a 30 percent interest; ExxonMobil holds a 20 percent interest, and PanCanadian holds the remaining 20 percent interest. The partners in the Llano prospect are in discussions to formulate a development plan and to drill other exploratory wells.

Additionally, EEX has entered into an agreement with Murphy Oil to farmout its 40 percent working interest in the Mason Prospect in return for a carried 18 percent working interest in the initial exploration well on the prospect. The Mason Prospect on Garden Banks Block 562 is located approximately ten miles south of the Llano area. The well will be operated by Murphy and targets potential hydrocarbon accumulations in both Lower Pliocene- and Miocene-age sands. Drilling is expected to commence by the end of the third quarter. Other partners in the well are PanCanadian and Enterprise Oil. EEX's "Mason Prospect" is identified by Murphy Oil as its "Locomotion Prospect."