Houston Exploration Makes 3 Gulf of Mexico Discoveries

The Houston Exploration Company has made three natural gas discoveries along the Continental Shelf of the Gulf of Mexico.

At East Cameron 280, the B-3 discovery well was drilled to a total depth of 7,877 feet and completed in the Ang "B" formation. The company has a 50 percent working interest in the well, which should come on production in August 2003. The production rate is expected to be 7 million cubic feet (MMcf) of natural gas per day.

The High Island 47 #1 well was drilled to a total depth of 10,595 feet and encountered pay in a lower Miocene sand. The discovery tested 13 MMcf of gas per day, of which the company has a 33.3 percent working interest. A second well is currently being drilled to further assess the potential for the area. First production from the High Island 47 #1 well should begin during the fourth quarter of 2003.

Lastly, at Galveston 424, the company participated in the #1 discovery well with a 35 percent working interest. This well was drilled to a total depth of 10,261 feet and encountered multiple pay sands, of which the lowest zone tested 15 MMcf of gas per day. Production is scheduled to begin in the first quarter of 2004. A delineation well should begin drilling during the third quarter of 2003 to expand the production from the field.