Cal Dive Successfully Completes Subsea Well

Cal Dive's subsidiary, Energy Resource Technology has successfully drilled, completed and brought online its second company-operated subsea well. The High Island A 544 well #2, drilled in 235 feet of water to a total measured depth of 3,800 feet by the Ensco 69 drilling rig, encountered 15 feet of apparent natural gas pay in a single interval. The initial flow rate was 6400 MCFD at 1200 psi flowing tubing pressure.

Cal Dive fabricated and installed an 11,700 foot subsea flowline to an ERT-operated host platform and provided the subsea tree from its full field inventory. Cal Dive's DSV Witch Queen laid the flowline while the Cal Diver I assisted with commissioning the well. ERT has 100% ownership of the well and platform.

Johnny Edwards, President of ERT, noted, "Successful completion of the High Island subsea well demonstrates ERT's ongoing strategy to add value to acquired properties. High Island A 544 was among properties acquired from Williams Production Company in June 2002. No reserves were assigned to this field in the acquisition economics. ERT subsequently acquired 3-D seismic for the block and independently worked and mapped the target zone, which essentially twinned a well drilled in the 1970s.

"The property interests acquired from Williams, together with those in larger acquisitions from Shell and Amerada Hess also completed in 2002, have provided ERT a two to three-year backlog of wellwork," Mr. Edwards continued. "Successful exploitation of these properties is key to maintaining our shelf production at a time when high commodity prices make additional property acquisitions difficult."