Kerr-McGee Wins 3 Licenses Offshore Nova Scotia

Kerr-McGee Offshore Canada Ltd., a wholly owned subsidiary of Kerr-McGee Corp. was the winning bidder on three offshore deepwater licenses, parcels 1, 2 and 7, in the Call for Bids No. NS00-1 for Exploration Licenses offshore Nova Scotia. Kerr-McGee will operate the nearly 1.8 million acres, that are in water depths ranging from 350 feet to 10,000 feet, with 100% working interest.

"Kerr-McGee has a solid, successful history in deepwater exploration and production," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "The company currently produces about 55,000 barrels of oil equivalent per day net from the Pompano, Baldpate, Penn State and Neptune fields in the deepwater Gulf of Mexico, and expects first production at the Conger and Northwestern fields before year-end."

"Developments are also underway for the Nansen and Boomvang fields and we are currently appraising our recent Gunnison discovery, each in more than 3,000 feet of water and operated by Kerr-McGee. The award of these additional licenses in Nova Scotia will increase our inventory of deepwater prospects in proven, high-potential, deepwater trends where we believe that we can further capitalize on this expertise. Kerr-McGee now operates seven licenses that include more than 3 million acres in the deep waters of the Scotia Shelf, making this a core exploratory area for our company."

With the award of these licenses, Kerr-McGee will spend approximately $60 million Canadian during the initial five-year term of the licenses and will hold interests in approximately 27 million gross acres in deepwater areas of the Gulf of Mexico, Australia, Brazil, Canada, Gabon and Thailand. The winning bids are subject to approval by the Canadian federal and provincial governments.