Kerr-McGee Successful Offshore Australia

Kerr-McGee Corp. has completed drilling of its second well, Rubicon 1, on block WA 278-P in the Timor Sea of Australia. Initial logging results indicate the presence of approximately 100 gross feet of hydrocarbon, and evaluation is ongoing. The Rubicon 1 well was drilled to a depth of 5,795 feet in approximately 235 feet of water by Diamond Offshore's semisubmersible, Ocean Bounty. This is the third of six wells to be drilled in this area by Kerr-McGee. Kerr-McGee's first well on the block, Prometheus 1, encountered approximately 180 net feet of gas bearing reservoir in Permian age sandstones.

Kerr-McGee NW Shelf Australia Energy PTY Ltd., a subsidiary of Kerr-McGee Corp., is operator of the WA-278P block, with 39 percent interest. Partners include PanCanadian Petroleum Limited, 39 percent; TAP Oil Limited Company, 12 percent; and SK Corporation, 10 percent. Kerr-McGee also operates and owns 39 percent in adjacent blocks WA 276-P and WA 277-P.