Spirit Energy 76 participates in deepwater discovery; first well on Leo prospect finds 200' of pay
Sugar Land, Texas, July 15, 1998 - Spirit Energy 76, Unocal Corporation's U.S. exploration and production unit, today said its well in the Leo prospect in the deepwater of the Gulf of Mexico has discovered hydrocarbons. The well, which is operated by British Borneo, was drilled to a total depth of 18,090 feet and penetrated multiple pay zones between 11,500 and 17,500 feet with a total net oil and gas pay of approximately 200 feet.
Spirit Energy 76 holds a 37.5 percent working interest in the well. Its partners are British-Borneo Petroleum Inc. (37.5%), Petrobras America Inc. (12.5%) and Snyder Oil Corporation (12.5%).
Current plans are to temporarily abandon the well, located in Mississippi Canyon Block 546 at a water depth of 2,500 feet, until development plans are finalized. Spirit Energy 76's adjacent Calypso prospect will be drilled immediately following the completion of operations on the Leo well.
The discovery announced today is the latest milestone in Spirit Energy 76's aggressive Gulf of Mexico deepwater exploration program launched last year. During 1998 Spirit Energy 76 plans to drill four wells in the Gulf's deepwater, where the company's goal is to find reserves totaling 400 million barrels of oil equivalent (MMBOE) over five years. Its current deepwater portfolio includes 129 blocks.
Spirit Energy 76 has net production of about 180,000 BOE per day and operates 330 offshore platforms with 2,700 active wells in 355 fields in the Gulf of Mexico region. The unit employs approximately 1,300 people.
Unocal is one of the worlds' largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Central and Southeast Asia, Latin America and the U.S. Gulf of Mexico region.
Forward-looking statements regarding exploration activities, future production, drilling success and capital spending in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.
Updated: July 1998