HOUSTON, Dec. 18 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) announced
today that its Board of Directors has approved a capital investment program of
approximately $700 million for the year 2001. The spending will be funded
from Ocean's discretionary cash flow based on anticipated commodity prices,
and is subject to change if market conditions shift or new opportunities are
identified.
The $700 million figure is higher than previously anticipated because of
development expenditures related to Ocean's recently announced Magnolia
deepwater discovery in Garden Banks Block 783 of the Gulf of Mexico and other
additions to its existing deepwater inventory. The projected 2001 program
represents a 22 percent increase over estimated 2000 spending of $575 million.
High-impact exploration activities constitute some 25 percent of total
worldwide expenditures.
"We are looking forward to beginning our high-potential West Africa
exploratory program in 2001, continuing to exploit our deepwater Gulf of
Mexico exploration inventory, and developing our existing deepwater successes
in the Gulf," said James T. Hackett, Chairman, President and Chief Executive
Officer. "We also remain committed to financial discipline and preserving our
balance sheet strength."
Gulf of Mexico
In the Gulf of Mexico, Ocean plans to spend some $300 to $350 million to
grow its reserve base through delineation of recent discoveries and additional
deepwater exploration, while pursuing select opportunities in its inventory of
core shelf holdings.
Ocean's deepwater expenditures will include continued development of its
commercial discoveries, including the Nansen and Boomvang projects in the East
Breaks area and the Magnolia discovery on Garden Banks Block 783. The company
and its partners recently drilled the Nansen #8 well on East Breaks 602,
extending the field to the south. Additional development is planned in 2001.
At Boomvang, a second rig has been secured to drill concurrently a total of
six to seven wells at North Boomvang and East Boomvang.
Ocean and its partner also recently announced the commerciality of its
Magnolia discovery, where additional drilling is planned to determine the best
strategies for field development and facilities construction. Ocean holds a
25 percent working interest in Garden Banks Block 783, the site of the
Magnolia program.
International
On the international front, Ocean has allocated $175 to $225 million to a
number of high-profile exploratory and high-rate development wells.
In Equatorial Guinea, Ocean and its partners plan to drill the Oreja
Marina prospect on Block C in early 2001. Additional development is planned
on Block B in the Zafiro Field where the Jade platform was installed earlier
this year and, with the recent completion of the Jade #3 development well,
production levels have reached approximately 135,000 barrels of oil per day
gross, 28,000 net to Ocean. Ocean holds a 37.5 percent working interest in
Block C and a 21.5 percent interest in Block B.
In deepwater Angola, Ocean and it partners currently plan to drill an
exploratory well on Block 24 in the first half of 2001. Ocean has a 15
percent working interest in this block.
In addition, the company plans to drill several wells in the Gulf of Suez
on two of its concessions in Egypt.
U.S. Onshore
Ocean plans to spend $125 to $175 million to primarily enhance production
from its long-life natural gas reserves to meet the demands of the favorable
North American gas market. In the Bossier natural gas play in East Texas,
where Ocean holds approximately 12,000 acres, the company plans to drill more
than 15 wells next year. The company will also continue to pursue its
development of the Bear Paw field in Montana with the drilling of
approximately 75 wells planned for 2001.
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. 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.
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