Kerr-McGee Continues Deepwater Success

Kerr-McGee

Kerr-McGee reports that recent appraisal drilling has confirmed the Constitution and Hornet oil fields in the deepwater Gulf of Mexico. Constitution, located in 5,000 feet of water on Green Canyon block 680 was drilled by the semisub, Noble Amos Runner, and Hornet, in 3,850 feet of water on Green Canyon block 379 was drilled by the semisub Ocean Victory, are each owned 100% by Kerr-McGee.

"Our 2003 exploratory program is off to a good start, with the early success at Constitution and Hornet," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "We are very encouraged by the confirmation of these two fields in the Green Canyon area. Further appraisal work is ongoing to determine the full resource ranges and the optimum potential development solutions for these fields. This work will be part of our active Gulf of Mexico exploration program through the remainder of 2003."

Discovery of the Constitution field was confirmed by the second successful well, located in a separate fault block. The pay sands are high quality oil reservoirs, with porosities of 25% to 30%, and greater than 30-degree API gravity oil. The initial well, drilled to a depth of 13,727 feet, encountered more than 100 feet of net oil pay in a shallow Plio-Pleistocene objective. The second well, located approximately 4,000 feet northwest of the initial exploratory well and drilled to a depth of 15,213 feet, encountered approximately 375 feet of net oil pay in Plio-Pleistocene sands, primarily in deeper objectives not tested in the initial well. This well currently is being sidetracked down-dip, approximately 1,650 feet southwest, to test additional potential deeper reservoirs. An additional appraisal well is expected to be drilled to better define the aerial extent of the reservoirs.

The Hornet field was confirmed after an appraisal well encountered more than 275 feet of net pay in Plio-Pleistocene sands. This well currently is being sidetracked approximately 2,300 feet to the northwest into Green Canyon block 335 to better define the aerial extent of the reservoirs. High quality oil and gas reservoirs have been confirmed on both the northeast and northwest flank of a salt-supported feature. Porosities range from 23% to 30%.


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