Magnolia Successful in Gulf of Mexico

Ocean Energy, Inc. and Conoco announced that drilling on their Magnolia deepwater prospect in Garden Banks Block 783 of the Gulf of Mexico has confirmed the stand alone commerciality of the discovery made in May 1999.

The Magnolia GB 783#2 appraisal well, a 6,000-foot westerly step-out from the original find, was drilled to a total depth of 17,435 feet, and encountered oil-bearing sands in excess of 400 net feet, with 300 net feet in one continuous unit. After completion of logging operations, the well was sidetracked 3,000 feet to the southwest to provide an additional penetration of the main pay sand. The sidetrack encountered 400 net feet of oil-bearing sand.

"While we are still defining the size and scope of the discovery, we are pleased with the results to date and have high expectations for future drilling," said James T. Hackett, Ocean Energy Chairman, President and Chief Executive Officer. "This discovery is another step forward in Ocean's successful deepwater Gulf of Mexico program."

"We are optimistic about this field," said Rob McKee, Conoco's Executive Vice President of Worldwide Upstream Operations. "The appraisal well was a bold step-out from the original discovery, and the sand thickness in both wells exceeded our expectations. Further appraisal will now focus on sizing and optimizing the development. Other attractive targets within the overall structure have been identified. In total, the field could yield more than 150 million barrels of oil equivalent. The partnership will continue this appraisal work as soon as the current information has been studied."

Ocean holds a 25 percent working interest in a two-block unit that includes Garden Banks Block 783, the site of the Magnolia program, and Garden Banks Block 784. Conoco, a major integrated energy company active in more than 40 countries, holds a 75 percent working interest in the blocks and serves as operator.

Ocean Energy, Inc. is an independent energy company engaged in the exploration, development, production, and acquisition of crude oil and natural gas. North American operations are focused in the shelf and deepwater areas of the Gulf of Mexico, the Permian Basin, Mid-continent and Rocky Mountain regions. Internationally, Ocean holds a leading position among U.S. independents in West Africa with oil and gas activities in Cote d'Ivoire, Equatorial Guinea and Angola, where it is the only U.S. independent with acreage and working interests. The company also conducts operations in the republics of Egypt, Tatarstan, Pakistan, Yemen and Indonesia.