FIELD ACTIVITIES - PanCanadian Petroleum Discovery Well
Tuesday December 16, 1997
Company Press Release
SOURCE: Enserch Exploration, Inc.
EEX Announces Successful Deepwater Discovery
HOUSTON, Dec. 16 /PRNewswire/ -- Enserch Exploration (NYSE/EEX) has made a discovery with its first exploratory well drilled on Garden Banks Block 386 in the deepwater Gulf of Mexico. The well encountered a number of hydrocarbon bearing intervals located between depths of 23,000 feet and 25,340 feet. Drilling was suspended at a total measured depth of 25,342 feet prior to reaching the primary objective when the well reached equipment depth limitations for the semi-submersible rig on location. The well will be temporarily abandoned to evaluate recent enhancements provided by 3-D seismic processing and to explore appraisal and development options for the project area utilizing a larger drilling rig with greater depth capabilities.
''We are very encouraged by this success so early in our deepwater exploration program,'' said Tom Hamilton, Chairman and President, Chief Executive Officer. ''It is significant that this well contains hydrocarbon bearing sands similar to those encountered in the Auger area. This confirmation of our deepwater geologic model gives us great encouragement for the potential of our remaining inventory of prospects,'' Hamilton added. EEX will likely require an appraisal well to further define the areal extent and significance of this discovery in terms of reserve potential and commerciality.
The Llano well was the first of a multi-prospect joint venture with Enterprise Oil to test Miocene-aged objectives beneath EEX's approximately 75 blocks leased in the deepwater Gulf of Mexico. EEX is operator of the Llano discovery with a 30% working interest. Partners include Enterprise Oil (30%), PanCanadian (20%) and Mobil (20%).
Separately, EEX completed negotiations with Reading & Bates (NYSE: RB - news) that will extend EEX's access to the C. Kirk Rhein, Jr. semi-submersible rig. In the agreement, the rig will first be used by another operator for a short- term drilling activity. EEX now expects the rig to be available for its use in March 1998 to begin drilling prospects in the Green Canyon and Mississippi Canyon areas of the Gulf of Mexico. The rig has been contracted at below current market day rates. ''This rig agreement, in addition to our existing contract for the Diamond Voyager, gives EEX access to two deepwater rigs capable of drilling our deepwater prospects in the Gulf,'' said Tom Hamilton.
Enserch Exploration, which will change its name to EEX Corporation following a special meeting of shareholders later this week, is a natural gas and oil exploration and production company with activities focused in Texas and the Gulf of Mexico. |
