HOUSTON, April 23 /PRNewswire Interactive News Release/ -- Ocean Energy,
Inc. (NYSE: OEI) today announced that it has entered into a Gulf of Mexico
deepwater exploration agreement with Kerr-McGee Oil & Gas Corp., a wholly
owned subsidiary of Kerr-McGee Corp. (NYSE: KMG). The agreement calls for the
two companies to jointly explore and develop oil and gas prospects on
181 undeveloped deepwater blocks in the Gulf of Mexico located within several
proven trends.
The exploration venture will encompass more than a million gross acres
with Ocean holding an average working interest of approximately 43 percent in
the blocks. The partnership has already identified various drilling
opportunities of differing risk and size for 2001 and early 2002 with the
first well from the venture expected to spud in the second quarter. Ocean
will serve as operator for at least 25 percent of the first 15 exploratory
wells in the multi-year drilling program.
"This venture strengthens our position as one of the leading independents
in terms of deepwater leaseholdings in the Gulf of Mexico," said James T.
Hackett, Ocean Energy chairman, president and chief executive officer. "As
partners, our companies have already established a proven track record of
deepwater success. With this new and expanded partnership, we leverage the
economics and risks associated with a program of this magnitude and take
advantage of the combined technical and operational resources of the two
companies. We will fund the expected joint venture drilling program from
projected cash flows and the reallocation of previously planned capital
programs in 2001."
Since 1999, Ocean and Kerr-McGee have been developing their Nansen and
Boomvang deepwater discoveries in the East Breaks area of the Gulf of Mexico.
Together, estimated gross reserves for the two fields range from 190 to 260
million barrels of oil equivalent. The production sites will feature the
world's first truss spars with a combined production capacity of up to
80,000 barrels of oil and 400 million cubic feet of gas. Production is
anticipated to begin from the Nansen field in the fourth quarter of this year
and the Boomvang field in the first quarter of 2002.
Including the new joint venture, Ocean will hold interests in
approximately 1.5 million gross acres of Gulf of Mexico deepwater leasehold,
covering 274 blocks. During 2001, the company will participate in one of the
industry's most active worldwide exploratory and development deepwater
drilling programs, with 24 to 30 wells scheduled to be drilled.
A map of the leases included in this agreement is available on Ocean
Energy's website at http://www.shareholder.com/oceanenergy/news/OEI0423.pdf.
Ocean Energy, Inc. 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, Mid-continent and Rocky Mountain
regions. Internationally, Ocean holds a leading position among U.S.
independents in West Africa with oil and gas activities in Equatorial Guinea,
Cote d'Ivoire and Angola. The company also conducts operations in the
republics of Egypt, Russia, Pakistan and Indonesia.
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 or Form 10-K
for the year ended December 31, 2000. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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Related links:
http://www.shareholder.com/oceanenergy/news/OEI0423.pdf
http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html or fax,
800-758-5804, ext. 913463
CONTACT:
financial, Bruce Busmire, 713-265-6161, or
media, Janice Aston White, 713-265-6164, both of Ocean Energy,
Inc.
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