Newfield Makes Deep Shelf Discovery
Newfield Exploration has made a significant deep shelf discovery at West Cameron 73, located less than 10 miles offshore Louisiana in about 30 feet of water.
The West Cameron 73 #1 well was drilled and evaluated with wireline logs to a total depth of 16,082 feet. The well encountered more than 250' of net gas pay in two zones below 15,000 feet. Newfield is evaluating development plans and expects first production from the field in early 2004. Under new rules proposed by the Minerals Management Service, this discovery would qualify for royalty relief on the first 20 billion cubic feet of production.
Newfield acquired the West Cameron 73 block in a 2002 central Gulf of Mexico lease sale for $4.1 million. This discovery well is the first of eight to 10 deep shelf exploration wells that Newfield expects to drill in 2003. Newfield has drilled six successful deep shelf wells out of nine attempts to date.
"Our emphasis on exploration is paying dividends," said David A. Trice, Newfield President and CEO. "This demonstrates that talented explorationists armed with the best data and technology can continue to make significant discoveries on the Gulf of Mexico shelf. Although it is early in the evaluation process, this is a significant discovery and it has the potential to exceed our pre-drill reserve estimate of 50 billion cubic feet equivalent. I'm proud of our exploration teams and the meaningful impact they are having on our operations."
Newfield operates the West Cameron 73 discovery with a 70% working interest. Westport Resources Corporation owns the remaining 30% interest.
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