Nuevo's NAK #1 Well Comes Up Dry

Nuevo Energy Company announced that it has plugged and abandoned the NAK #1 well, the first exploration well in its 1.9-million-acre Accra-Keta Permit offshore the Republic of Ghana, as a dry hole. The well was drilled in 1,021 feet of water to a total depth of 10,100 feet. Nuevo is the operator of the Accra-Keta Permit with a 50% interest and has three partners in the block. The cost for the NAK #1 well is estimated to be approximately $12.5 million (approximately $1.5 million net to Nuevo).

"We continue to be enthusiastic about the potential for discovering significant reserves in our extensive holdings offshore Ghana, even though this is a wildcat area with a high level of risk," said Doug Foshee, Chairman and CEO of Nuevo. "Over the coming months, we will evaluate the NAK #1 well results, along with other technical data, in order to determine our next steps in this Permit."