HOUSTON, March 14 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that its wholly owned subsidiary, Reading & Bates Development
Co. ("DEVCO"), has participated in drilling and testing of a second large
natural gas discovery offshore Israel. The Mari-B #1 well was drilled to a
depth of 6,830 feet in 795 feet of water about 15 miles off the coast of
Israel. Electric logs indicated over 550 feet of high quality reservoir sands
were encountered in the well. Eighty-nine feet of the pay zone was perforated
and tested gas at the rate of 33 million cubic feet of gas per day. Gas flow
from the well during the test was restricted by equipment limitations on the
drilling rig. The operator estimates the well, if properly completed, is
capable of producing in excess of 100 million cubic feet of gas per day
through appropriate production facilities.
The Mari-B #1 discovery is a follow-up to the Noa #1 discovery drilled
last summer approximately eight miles to the west. DEVCO estimates the
combined gas in place at the Noa #1 and Mari-B #1 wells to be approximately
1 to 1.5 trillion cubic feet of dry gas. Additional delineation drilling will
be undertaken immediately.
DEVCO, through its wholly owned subsidiary, RB Mediterranean Ltd., owns a
15% working interest in the Israel Project.
In addition, DEVCO announced that its Boomvang Project in deepwater
offshore Texas is proceeding rapidly. DEVCO concurs with previously announced
reserve estimates of 70 - 100 million barrels of oil equivalent in several oil
reservoirs extending across portions of East Breaks Blocks 642, 643, 688 and
732. Platform, production facilities and pipeline contracts are being
evaluated, and development drilling is scheduled to begin in the second
quarter of this year. The partners anticipate first production in the first
quarter of 2002. DEVCO owns a 50% working interest in the Boomvang Project.
Kerr-McGee Oil & Gas Corp., a wholly owned subsidiary of Kerr-McGee Corp.
(NYSE: KMG) is operator and owns a 30% working interest. Ocean Energy Inc.
(NYSE: OEI) owns 20%.
Paul B. Loyd, Jr., Chairman of R&B Falcon Corporation said, "The Mari-B #1
well confirms the commerciality of our Israeli gas discoveries. We believe
the large quantity of gas and the quality of the reservoirs, coupled with
ready access to the Israeli markets, will result in very attractive project
economics. With regard to the Boomvang Project, we are pleased to provide
this additional information regarding the rapid progress being made toward
commercial development. We believe these two DEVCO projects, coupled with our
11% working interest in the two ultra-deepwater exploration blocks offshore
Gabon, represent significant, and largely unrecognized, value for R&B Falcon
Corporation shareholders."
R&B Falcon operates the world's largest fleet of marine-based drilling
rigs servicing the international oil and gas industry. Its fleet is composed
of 136 marine-based drilling units including the industry's largest fleet of
barge rigs and jackup rigs and a fleet of semisubmersibles and drillships
which is among the most capable in the world. It also operates a leading
fleet of towing vessels. Reading & Bates Development Co. is R&B Falcon's
exploration and production subsidiary.
This press release contains forward looking statements regarding planned
drilling activity, reserves estimates, anticipated development efforts and
production volumes that we believe are reasonable and achievable at this time.
However, reference should be made to the discussion of the various risk
factors to which the Company is subject and which may impact the Company's
business going forward, as more fully set out in the Company's 1999 SEC Form
10-K.
SOURCE R&B Falcon Corporation
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http://www.rbfalcon.com
Company News On-Call:
http://www.prnewswire.com/comp/118988.html or fax,
800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
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