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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (56300)	12/7/1999 1:35:00 PM
From: Winkman777	Respond to of 95453

More NG for KMG and OEI Kerr-McGee Announces Successful Nansen Appraisal Well December 7, 1999 12:53 PM OKLAHOMA CITY, Dec. 7 /PRNewswire/ -- Kerr-McGee Corp. KMG today announced the success of its first appraisal well at the Nansen prospect in the Gulf of Mexico, East Breaks block 602. The 12,399-foot appraisal well encountered approximately 100 feet of net oil and gas pay. The Nansen area includes East Breaks 601, 602 and 646, all operated by Kerr-McGee Oil & Gas Corp., a wholly owned subsidiary of Kerr-McGee Corp., with a 50% working interest. Ocean Energy Inc. OEI holds the remaining 50%. Reserves for the Nansen area are currently estimated to be in the range of 350 to 450 billion cubic feet equivalent. Located in 3,679 feet of water, the well is about 3,500 feet west of the original Nansen discovery, in an adjacent updip fault block. A second Nansen appraisal well has been spud to test another fault block located east of the discovery well. A third appraisal well is expected to be drilled to further delineate the reservoir. "This successful appraisal well establishes the commerciality of the Nansen prospect," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "We are now in a position to review development options for the greater Boomvang and Nansen areas. We expect to finalize development plans early next year, with initial production projected to begin in early 2002." The Nansen area is approximately eight miles east of the greater Boomvang area, where oil discoveries were announced at North Boomvang and West Boomvang earlier this year. Kerr-McGee is currently drilling an appraisal well to test a separate fault block on the North Boomvang prospect. Kerr-McGee operates the greater Boomvang area, including East Breaks 641, 642, 643, 688 and 732 with a 30% working interest. Partners are Reading & Bates Development Co., a wholly owned subsidiary of R&B Falcon Corp., 50%, and Ocean Energy Inc., 20%. Kerr-McGee is an Oklahoma City-based energy and chemical company with worldwide operations and assets of $5.9 billion. (Statements in this press release regarding the company's or management's intentions, beliefs or expectations for the future are "forward looking statements" within the meaning of the Securities Litigation Reform Act. Such statements may be affected by various factors and are subject to numerous risks such as the accuracy of the assumptions that underlie the statements, the success of the oil and gas exploration and production program, the price of oil and gas, drilling risks, uncertainties in interpreting engineering data, demand for consumer products for which Kerr-McGee's oil and gas business supplies raw materials, general economic conditions and other factors and risks discussed in the company's SEC filings, including Forms 10-K, 10-Q and 8-K/A. Actual results and developments may differ materially from those expressed or implied in this news release.) SOURCE Kerr-McGee Corporation