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

To: Wowzer who wrote (72542)	9/7/2000 10:13:26 AM
From: The Ox	Respond to of 95453

EEX Provides Operations Update HOUSTON--(BUSINESS WIRE)--Sept. 7, 2000--EEX Corporation (NYSE:EEX) reviewed the results of a mid-year analysis of its U.S. onshore capital program and indicated that two new deepwater wells are being drilled. Onshore U.S. Operations During the first six months of the year, EEX, through its subsidiaries, invested approximately $36 million to increase production and add reserves in their onshore producing assets. This investment program focused primarily on the assets acquired in December 1999 and in the 100%-owned Vaquillas Ranch Field. Twenty-one out of 25 wells drilled were successful. The Company's estimate of total proved reserve additions and revisions (including minority interest) from the onshore program is approximately 67 billion cubic feet of natural gas equivalent (Bcfe), or over 290% of the 23 Bcfe produced during the first six months of 2000. After production and asset sales, onshore reserves (including minority interest) increased by approximately 10%. Current production is approximately 130 million cubic feet of natural gas equivalent per day. "We are very pleased that our onshore program continues to perform as expected," said Tom Hamilton, chairman and president, chief executive officer of the company. "The first half finding costs of less than $0.60 per Mcfe achieved by our onshore team ranks very favorably with recent results of our peer group. These low cost reserve additions and high natural gas prices are generating considerable economic value for our shareholders. We are encouraged by the contribution of the onshore program to our overall performance, as it provides a solid base for our long-term growth strategy," he added. DeepWater Following the recent drilling success at Llano No. 3, EEX has relocated the semi-submersible rig, Glomar Arctic I, to the nearby Garden Banks Block 344 and is drilling a well to test the Jason Prospect. This prospect is expected to take approximately 90 days to drill and targets Lower Pliocene and Miocene-age sands up to a depth of approximately 18,000 feet. EEX is the operator with a 60% working interest in the block through the base of the Pliocene interval and a 30% interest in the deeper intervals. The well is subject to the Enterprise joint venture agreement, under which EEX will be carried for a 30% working interest. EEX's total working interest and costs in the well will be subject to the outcome of discussions currently underway with the other interest owners in the block. "Jason is one of several untested prospects remaining in the blocks around the Llano area. It is located approximately six miles northeast of Llano and will test the sands correlative to, but shallower than, those encountered in the Llano discovery," said Hamilton. In addition to the Jason Prospect well, EEX has an interest in a second well drilling in the DeepWater. The previously announced Mason Prospect (EEX release 08/01/00) on Garden Banks 562, operated by Murphy Oil, began drilling in mid-August and is also expected to take approximately 90 days to reach a targeted depth around 18,000 feet. EEX has an 18% carried interest in the Mason well. "We believe that these two wells are important steps to further define the potential of the area surrounding our Llano discovery. Additional discoveries would enhance the value of our major leasehold and infrastructure holdings in the area," said David Henderson, executive vice president and chief operating officer. EEX Corporation is an oil and natural gas exploration and production company with activities currently focused in Texas, the Gulf of Mexico and Indonesia. This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although EEX believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include political developments in foreign countries, federal and state regulatory developments, the timing and extent of changes in commodity prices, the timing and extent of success in drilling, discovering, developing and producing or acquiring oil and gas reserves, and conditions of the capital and equity markets during the periods covered by the forward-looking statements. EEX's periodic reports filed with the Securities and Exchange Commission include a discussion of important factors that could cause actual results to differ materially from those indicated in forward-looking statements. For additional information, call 1-888-EEX-NEWS, or visit our Web site at eex.com CONTACT: EEX Corporation, Houston John MacDonald, 713/243-3111