Unocal Announces Successful Appraisal of St. Malo Discovery in Deepwater Gulf of Mexico
July 01 2004 - 5:00PM
PR Newswire (US)
Unocal Announces Successful Appraisal of St. Malo Discovery in
Deepwater Gulf of Mexico SUGAR LAND, Texas, July 1
/PRNewswire-FirstCall/ -- Unocal Corporation (NYSE:UCL) today said
it has completed successful appraisal operations at the St. Malo
hydrocarbon discovery in Walker Ridge block 678 in the Gulf of
Mexico deepwater. The appraisal well encountered more than 400 net
feet of oil pay at depths greater than were encountered in the
earlier discovery well in 2003. The appraisal well results also
indicate the field's potential hydrocarbon resources are greater
than previously suggested by the discovery well. Unocal is
currently evaluating the results of the extensive testing program
that was conducted on the well. The evaluation will focus on
productivity, potential further appraisal operations and the
viability of development options, with the current objective of
establishing commerciality in 2005. "Based on the quality of the
test data and the increased rock volume, we intend to proceed with
work to assess the potential productivity of the field and evaluate
development options," said Mike Bell, Unocal's vice president for
Gulf of Mexico exploration and appraisal. The original St. Malo
discovery, announced in October 2003, encountered more than 450 net
feet of oil pay. To appraise the St. Malo discovery, the company
returned to the original Dana Point wildcat well, which was
completed as a dry hole in early 2001. The St. Malo appraisal well
drilled to 28,903 feet, approximately 2,000 feet deeper than the
original Dana Point well. The St. Malo appraisal drilling began on
May 4, 2004, and was completed in 57 days at a gross cost of $31
million. Redrilling on the Dana Point location saved Unocal and the
other co-venturers an aggregate of approximately $25 million over
the cost that would have been incurred by drilling a new well. The
appraisal well is located in 7,036 feet of water, approximately
6,000 feet east of the discovery well. Unocal is the operator and
holds a 28.75-percent working interest. Unocal's co-venturers in
the St. Malo prospect are Petrobras (NYSE:PBR), 25 percent; Devon
Energy Corporation (AMEX:DVN), 22.5 percent; ChevronTexaco
Corporation (NYSE:CVX), 12.5 percent; EnCana Gulf of Mexico LLC
(NYSE:ECA), 6.25 percent; ExxonMobil (NYSE:XOM), 3.75 percent; and
Eni SpA (NYSE:E), 1.25 percent. Upon completion of the St. Malo
appraisal well, the Discoverer Spirit will move on to the Sardinia
prospect in Keathley Canyon 681. About Unocal Corporation Unocal is
one of the world's leading independent natural gas and crude oil
exploration and production companies. The company's principal oil
and gas activities are in North America and Asia. This news release
contains forward-looking statements about matters such as Unocal's
assessment of the quality and extent of the St. Malo hydrocarbon
formation, evaluation of the discovery test results, drilling and
development plans for the Walker Ridge area, the timing of any
commerciality of the St. Malo discovery, and operations of the
Discoverer Spirit drillship. Although these statements are based
upon Unocal's current expectations and beliefs, they are subject to
both known and unknown risks and uncertainties that could cause
actual results and outcomes to differ materially from those
described in, or implied by, the forward-looking statements,
including changes in commodity prices; the extent of the company's
operating cash flow and other capital resources available to fund
its capital expenditures; the rates and timing of any future
production from the St. Malo formation, adverse geological and
other operational factors; regulatory, political, and economic
factors; performance by third parties and other risks and
uncertainties discussed in Unocal's 2003 Annual Report on Form
10-K, as amended, and subsequent reports filed by Unocal with the
Securities and Exchange Commission (SEC File No. 1-8483). Copies of
the company's SEC filings are available from the company by calling
800-252-2233 or from the SEC by calling 800-SEC-0330. The reports
are also available on the Unocal web site. Unocal undertakes no
obligation to update the forward-looking statements in this news
release to reflect future events or circumstances. DATASOURCE:
Unocal Corporation CONTACT: Media, Christine LeLaurin,
+1-281-287-5793, or Investors, Robert Wright, both of Unocal
Corporation, +1-310-726-7665
Copyright
ENI (NYSE:E)
Historical Stock Chart
From May 2024 to Jun 2024
ENI (NYSE:E)
Historical Stock Chart
From Jun 2023 to Jun 2024