HOUSTON, Jan. 7 /PRNewswire/ -- Ocean Energy (NYSE: OEI) announced today
several major developments that will enhance its position in the Gulf of
Mexico.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000107/DAF004 )
Nansen/Boomvang Success
Ocean Energy continues to report successful results from appraisal
drilling of its Nansen discovery in the Gulf of Mexico on East Breaks Block
602. A third well has logged 240 feet of oil and gas pay. The well is
located in 3,680 feet of water and is approximately 3,000 feet east of the
discovery well. A fourth well will be spud during the first quarter to
further delineate reserve potential. Ocean Energy holds a 50 percent working
interest in the East Breaks 602 #3 well, and the remaining working interest is
owned by Kerr-McGee Oil and Gas Corp., a wholly owned subsidiary of Kerr-McGee
Corp. (NYSE: KMG), as operator.
Additionally, Ocean Energy continues successful appraisal drilling in the
greater Boomvang area with the North Boomvang prospect. The East Breaks Block
643 #3 w 165 feet of net oil and
gas pay. The Company holds a 20 percent working interest in the five-block
area. Partners include Kerr-McGee, as operator with a 30 percent working
interest, and Reading & Bates Development Co., a wholly owned subsidiary of
R&B Falcon Corp., with 50 percent.
Development scenarios are being evaluated for the entire East Breaks area.
The Company anticipates that its estimated net reserves attributable to the
Nansen/Boomvang complex have the potential to exceed its total estimated year
2000 production.
2000 Drilling Program with Duke Energy Announced
Duke Energy Hydrocarbons LLC and Ocean have agreed to another joint
venture Gulf of Mexico drilling program for 2000. Duke Energy will acquire an
approximate 50 percent working interest in up to 14 exploratory wells. Duke
Energy has committed approximately $70 million toward the program during 2000.
Ocean has also purchased certain working interests held by Duke Energy in
four prospects that were part of a 1999 Gulf of Mexico joint venture drilling
program. Production from the acquisition is anticipated to contribute an
average of approximately 2,400 net barrels of oil equivalent per day in 2000
with additional development activities planned.
"Our continued success in the East Breaks area of the Gulf of Mexico is an
exciting beginning to our worldwide high-impact exploratory program in 2000,"
said James T. Hackett, Chairman, President and Chief Executive Officer. "The
Duke Energy transactions reflect our goal to efficiently explore for and
exploit reserves on Ocean's inventory of Gulf of Mexico properties."
Withdrawal from Bangladesh
The Company earlier reported in the third quarter that it was carefully
reviewing its exploration program in Bangladesh. As a result of its further
review, Ocean has decided to discontinue any further operations in Bangladesh,
and will incur an $18 million impairment ($12 million after tax) in the
quarter ended December 31,1999.
"We want to remain focused on projects that make the biggest impact on
reserve replacement efficiency, cash margins and return on capital. Given our
favorable Gulf of Mexico position and other promising international
opportunities, Bangladesh does not meet our enhanced economic thresholds,"
concluded Hackett.
Ocean Energy is an independent energy company engaged in the exploration,
development, production, and acquisition of crude oil and natural gas. North
American operations are focused in the shelf and deepwater areas of the Gulf
of Mexico, the Permian Basin, Midcontinent and Rocky Mountain regions.
Internationally, the company explores for and produces oil and gas in West
Africa (Cote d'Ivoire and Equatorial Guinea), Egypt, Russia and Indonesia.
Ocean Energy also has exploration programs underway in Angola, Pakistan and
Yemen.
Certain statements in this news release regarding future expectations,
plans for acquisitions, dispositions, and oil and gas reserves, exploration,
development, production and pricing may be regarded as "forward looking
statements" within the meaning of the Securities Litigation Reform Act. They
are subject to various risks, such as operating hazards, drilling risks, the
inherent uncertainties in interpreting engineering data relating to
underground accumulations of oil and gas, as well as other risks discussed in
detail in the Company's SEC filings, including the Annual Report on Form 10-K
for the year ended December 31, 1998. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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Related links:
http://www.oceanenergy.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000107/DAF004
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/913463.html or fax,
800-758-5804, ext. 913463
CONTACT:
William L. Transier, Executive Vice President
and Chief Financial Officer of Ocean Energy, Inc., 713-265-6161
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