OKC-based Kerr-McGee reports discovery

Journal Record, The (Oklahoma City), May 9, 2006 by Journal Record Staff

Kerr-McGee Corp. on Monday announced a natural gas discovery in the deepwater Gulf of Mexico at the Claymore prospect in Atwater Valley block 140.

The Claymore #1 well was drilled to 25,000 feet and encountered more than 150 feet of net pay in multiple zones.

We are encouraged by the Claymore discovery, said David A. Hager, Kerr-McGee chief operating officer.

The Claymore #1 is the first well in the Oklahoma City-based company's 2006 subsalt program in the deepwater Gulf of Mexico.

We plan to finalize the evaluation of this well, and immediately drill a side-track appraisal well to define the aerial extent and potential resources, Hager said.

Claymore is in 3,700 feet of water 150 miles southeast of New Orleans. Kerr-McGee operates Claymore with a 33.5-percent working interest.

Partners in the discovery include Dominion Exploration & Production Inc. with a 31.5-percent working interest; Statoil Gulf of Mexico LLC, a 25-percent working interest; and Woodside Energy (USA) Inc., a 10-percent working interest.

The rig will remain on location and begin drilling the side- track appraisal well 4,600 feet northeast of the discovery well.

Kerr-McGee also is drilling the Caesar prospect located in Green Canyon block 683. The well currently is at 29,000 feet.

Kerr-McGee operates the subsalt Miocene prospect with a 20- percent working interest. Partners in Caesar include Shell with a 62.5-percent working interest and Plains Exploration & Production with a 17.5-percent working interest.

Kerr-McGee also spudded the Grand Cayman prospect located in Garden Banks blocks 517, 518, 561 and 562. The company operates Grand Cayman with a 35-percent working interest. Partners include Plains Exploration & Production with a 30-percent working interest; Statoil Gulf of Mexico LLC with a 25-percent working interest; and Newfield Exploration Co. with a 10-percent working interest.