Spinnaker Says Front Runner Spar Project Past Halfway Point

Spinnaker reports that the Green Canyon 338 #7 in the Gulf of Mexico has been drilled to a total depth of 23,214 feet. The well encountered productive interval in the FR 44, 45, 46 and 47 sands and met the Company's expectations. The drilling of the Green Canyon 338 #8 has commenced. The GC 338 #8 will be the last exploitation/exploration well to be drilled from the Front Runner Spar site. Following the completion of that drilling operation, Diamond Offshore's semisub, Ocean Quest, will be released.

The Front Runner Spar project is now 58% complete and first production is anticipated by mid-year 2004. The Spar and related facilities are designed to accommodate production rates of approximately 80,000 barrels of oil equivalent per day (BOEPD).

Spinnaker holds a 25% WI in the Front Runner Field complex and in approximately 100,000 acres adjacent to the discoveries. The Company and its partners own a number of prospects in the area. One of those exploratory prospects, located in Green Canyon Block 380 (Cool Papa), is currently being drilled by the semisub, Noble Max Smith.

Murphy owns a 37.5% working interest in Green Canyon Block 338 and serves as operator; partners are Dominion with 37.5%, and Spinnaker with the remaining 25%.