Spinnaker Successful on High Island

Spinnaker Exploration Company announced its eighth consecutive discovery in the High Island Project Area (HIPA). The High Island Block A-7 #3 was drilled by Marine Drilling's jackup, Marine 3, in approximately 55 feet of water. Productive sands were found at the Rob L-3, Rob L-3 (lower) and Rob L-5 intervals. The well explored a separate fault block from the High Island A-7 #2 field discovery well announced in April of this year. The A-7 #2 began producing in September and is currently making 34 million cubic feet of gas per day and 58 barrels of condensate per day at 8,000 PSI flowing tubing pressure.

The A-7 field is situated in 40 feet of water immediately east of Spinnaker's 75% owned High Island 202 field complex. All gas from the A-7 field will be processed at Spinnaker's High Island 199 facility. A separate "B" platform has been designed and will accommodate the A-7 #3 well. The "B" platform would also service 2-4 additional wells that are likely to be drilled in the field. Construction of the "B" platform will commence shortly.

Spinnaker operates Block A-7 and owns a 61 percent working interest.

Spinnaker is currently preparing to set and cement productive casing to approximately 15,300 feet in the High Island A-7 #3. The well will then be drilled to further test lower Rob sands. Production from the High Island A-7 #3 is anticipated in the second or third quarter of 2001. The High Island A-7 #4 will commence drilling following completion of the High Island A-7 #3.

Spinnaker Exploration Company is an independent energy company engaged in the exploration, development and production of natural gas and oil in the U.S. Gulf of Mexico.