EEX Drills Successful Well At Jason Prospect

EEX Corporation announced that the Garden Banks Block 344 Well No. 3, an exploratory well on the Jason Prospect, has encountered hydrocarbon-bearing sands. The well was drilled to a total depth of approximately 21,000 feet and encountered hydrocarbon-bearing intervals totaling approximately 100 net feet of pay. Early evaluation of the information gathered by well logs, bottom hole pressure tests, fluid samples and side-wall cores indicates that the Jason discovery warrants appraisal. To further evaluate this find, the company is considering a sidetrack from the existing well bore or another well at a drilling location elsewhere on the block. EEX owns a 100% working interest and approximately 80% net revenue interest in Block 344.

"The well at Jason added greatly to our understanding of the regional reservoir potential as it relates to Llano and the additional exploration prospects in the area. In addition, this discovery, should it be commercial, may provide another opportunity to utilize our infrastructure assets, including the nearby sub-sea pipeline and the Enserch Garden Banks floating production system," said Tom Hamilton, chairman and president, chief executive officer.

Following operations to prepare the discovery well for re-entry as a side-track or to complete as a development well in the future, the semi-submersible rig, Glomar Arctic I, will remain on location while appraisal options are considered.

The Greater Llano Area, which includes the Jason Prospect, is located in waters offshore Louisiana in the Gulf of Mexico and lies approximately 200 miles southeast of the city of Houston. The Jason Prospect is located approximately six miles east-northeast from the previously announced deep-water discoveries in the Llano field.