HOUSTON, Nov. 30 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) and Conoco
(NYSE: COCA and COCB) today announced that drilling on their Magnolia
deepwater prospect in Garden Banks Block 783 of the Gulf of Mexico has
confirmed the stand alone commerciality of the discovery made in May 1999.
The Magnolia GB 783#2 appraisal well, a 6,000-foot westerly step-out from
the original find, was drilled to a total depth of 17,435 feet, and
encountered oil-bearing sands in excess of 400 net feet, with 300 net feet in
one continuous unit. After completion of logging operations, the well was
sidetracked 3,000 feet to the southwest to provide an additional penetration
of the main pay sand. The sidetrack encountered 400 net feet of oil-bearing
sand.
"While we are still defining the size and scope of the discovery, we are
pleased with the results to date and have high expectations for future
drilling," said James T. Hackett, Ocean Energy Chairman, President and Chief
Executive Officer. "This discovery is another step forward in Ocean's
successful deepwater Gulf of Mexico program."
"We are optimistic about this field," said Rob McKee, Conoco's Executive
Vice President of Worldwide Upstream Operations. "The appraisal well was a
bold step-out from the original discovery, and the sand thickness in both
wells exceeded our expectations. Further appraisal will now focus on sizing
and optimizing the development. Other attractive targets within the overall
structure have been identified. In total, the field could yield more than
150 million barrels of oil equivalent. The partnership will continue this
appraisal work as soon as the current information has been studied."
Ocean holds a 25 percent working interest in a two-block unit that
includes Garden Banks Block 783, the site of the Magnolia program, and Garden
Banks Block 784. Conoco, a major integrated energy company active in more
than 40 countries, holds a 75 percent working interest in the blocks and
serves as operator.
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 Cote d'Ivoire,
Equatorial Guinea and Angola, where it is the only U.S. independent with
acreage and working interests. The company also conducts operations in the
republics of Egypt, Tatarstan, Pakistan, Yemen 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 on Form 10-K
for the year ended December 31, 1999. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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Related links:
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.
NOTE TO EDITORS: To guard against duplication, this information
is also being released by Conoco.
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